Oracle Corporation’s (Oracle) stock soared by about 36% following an unexpectedly strong earnings report yesterday. This surge outpaced the 30% jump seen in after-hours trading the previous day.
On Wednesday, Oracle shares closed at 328.33 USD on the New York Stock Exchange, marking a 35.95% increase. During intraday trading, the stock briefly surged above 40%.
This dramatic rise boosted Oracle’s market capitalization to 922.2 billion USD, elevating it to the 10th spot among the largest U.S. companies by market value—a leap of four positions compared to just one day prior. The company added an unprecedented 250 billion USD to its market cap in a single trading session.
The day’s gains represent Oracle’s most significant one-day rally since December 1992.
As Oracle’s market value nears the 1 trillion USD mark, Chairman Larry Ellison’s personal fortune has reportedly surpassed 300 billion USD. According to Financial Times estimates, this windfall could potentially dethrone Tesla Chief Executive Officer (CEO) Elon Musk as the world’s wealthiest individual.
However, Bloomberg’s Billionaires Index still currently ranks Musk as the top in global wealth.
In its earnings release following yesterday’s market close, Oracle reported quarterly revenue of 14.9 billion USD and earnings per share of 1.47 USD, slightly below Wall Street expectations of 15 billion USD and 1.48 USD, respectively.
Despite this minor shortfall, CEO Safra Catz highlighted a remarkable 1,529% surge in revenue from the cloud database segment last quarter, driven by soaring demand for artificial intelligence (AI) servers.
Catz projected robust growth for Oracle’s cloud-related revenue, forecasting a 77% increase to 18 billion USD this fiscal year, followed by further expansion to 32 billion USD, 73 billion USD, and 114 billion USD over the next four years.
During the post-earnings conference call, she disclosed that Oracle has secured cloud contracts with leading AI companies including OpenAI, xAI, and Meta.
This news initially sparked nearly a 30% jump in Oracle’s stock during after-hours trading, with the momentum carrying into the regular session where it closed up 36%.