Oracle's shares jumped after reporting a surge in data centre revenue as the company begins delivering capacity for AI contracts. The company founded by Larry Ellison posted $7.4bn in infrastructure revenue last quarter, with wider cloud business growth accelerating between 64 and 70 percent year-on-year. Oracle signed $30bn of new data centre contracts in the quarter, bringing its pipeline to $664bn.

Clay Magouyrk, co-CEO, announced 850 megawatts of data centre capacity came online and six of eight buildings for Open AI were delivered at the 800MW Abilene campus in Texas. Total revenue rose 30 percent to $19.3bn. However, capital expenditures spiked to $28.5bn, up from $8.5bn a year prior, exceeding quarterly revenue.

Net income stood at $4.7bn. The Austin, Texas-based group previously outlined a $70bn investment plan for the coming fiscal year. Free cash flow was negative $5bn.

S&P downgraded Oracle's credit to one notch above junk status in July, citing reliance on a few customers and an uncertain path to profitability. Shares have fallen nearly half since the record level hit after the Open AI deal announcement in September 2025. Gabriela Borges, analyst at Goldman Sachs, warned the company needs to significantly increase cash flow.

Oracle has faced setbacks with data centre projects due to permitting delays and regulatory requirements.