CFO Safra Katz said the Stargate AI venture isn’t formed yet but “some of our business with OpenAI, which is one of our partners in Stargate, is part of our future very much so.”

Oracle Corp. (ORCL) shares rallied sharply in Wednesday’s extended session after the database giant announced forecast-beating earnings and raised its fiscal year 2026 revenue.

In a statement, CEO Safra Catz said the fiscal year 2025 was a “good year” and flagged that the current year would be even better as “revenue growth will be dramatically higher.”

The database giant now estimates its total cloud growth, including applications and infrastructure, to be over 40% in the current year, up from 24% in FY25. Cloud infrastructure growth is expected to accelerate to 70% from 50%.

Remaining performance obligations (RPO), a key operational metric, are expected to increase by more than 100% this year.

Larry Ellison, Oracle’s chief technology officer, said MultiCloud database revenue from Amazon, Google, and Microsoft’s Azure more than doubled from the third quarter. “We currently have 23 MultiCloud datacenters live with 47 more being built over the next 12 months,” he added.

For the fourth quarter of the fiscal year 2025, Oracle reported adjusted earnings per share (EPS) of $1.70 and revenue of $15.90 billion, exceeding the Finchat-compiled consensus estimates of $1.64 and $15.59 billion, respectively.

Oracle’s board approved a cash dividend of $0.50 per share, payable on July 24, to shareholders of record as of July 10.

On the earnings call, Katz said total revenue for FY26 would be at least $67 billion, up more than $1 billion from the previous outlook and marking 16% constant currency growth, according to a transcript by Koyfin. This revenue guidance compares favorably to the $65.36 billion consensus estimate.

The company expects first-quarter adjusted EPS of $1.44-$1.48 and revenue growth of 12%-14%. Analysts, on average, estimate $1.48 in EPS and 12.5% revenue growth. 

Forex translation is expected to have a $0.02 per share positive impact on earnings and a flat to 1% positive impact on the topline.

Answering an analyst’s question on the call, Catz said the Trump administration-backed private Stargate artificial intelligence (AI) partnership is still in the works. Oracle is part of the partnership.

“There are a lot of partnerships we are in the middle of right now that are all part of this enormous growth rate,” Katz said, adding that “We have so much in pipeline right now that -- and of course, we have so much in RPO, meaning those are noncancelable contracts.”

She also said Stargate wasn’t formed yet, but “some of our business with OpenAI, which is one of our partners in Stargate, is part of our future very much so.”

On Stocktwits, retail sentiment toward the Oracle stock was ‘extremely bullish’ (96/100) by late Wednesday, with the message volume at ‘extremely high’ levels.

A bullish watcher sees the stock surpassing $200 by the end of June.

Another called the quarterly results “amazing.”

Oracle stock fell 0.62% to $176.38 on Wednesday and jumped 7.58% to $189.75 in the after-hours session. The stock is up about 6.5% this year.

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