Tech
Oracle Adds 30 Billion in AI Cloud Deals and Wall Street Cheers the Backlog
Oracle shares jumped 5.5 percent in premarket trading Friday after the company booked more than 30 billion dollars of additional AI cloud contracts in its first fiscal quarter, lifting its revenue backlog to 664 billion dollars. That sailed past the 639.89 billion analysts had expected, per Visible Alpha data, and eased the biggest worry hanging over the stock.
The worry was real. Oracle shares were down more than 21 percent so far in 2026 while the S&P 500 rose about 11 percent, as investors questioned whether its debt fueled data center buildout would ever convert into cash. Friday answered the demand side in emphatic fashion. Customers keep signing, and JPMorgan analysts said the print addresses key concerns around sustained backlog growth and its conversion into revenue.
The scale of the buildout is hard to overstate. As eToro market strategist Lale Akoner put it, demand was always the easy part for Oracle; proving the enormous data center expansion generates enough cash to justify the cost was the real test. At the current share price near 161.30 dollars, the pop adds roughly 24 billion dollars in market value, and the stock still trades at 16.86 times forward earnings, a discount to Microsoft at 23.84 and Amazon at 22.58, per LSEG.
The AI infrastructure boom keeps minting winners beyond the usual hyperscalers. For Oracle holders, this was the validation quarter. For everyone else, it is another signal that enterprise appetite for AI compute remains wide open.
Sources
New to crypto? Read the crypto glossary, browse frequent questions, read our story, or explore the story archive.