Oracle’s AI infrastructure push and surging cloud backlog are fueling optimism, but investors will look for proof that spending is translating into durable revenue growth and cash flow.

  • ORCL jumped 5.7% Thursday after expanding its AI infrastructure deal with HPE.
  • Investors await Oracle’s Sept. 10 earnings, with cloud growth and AI spending in focus.
  • Stocktwits sentiment for ORCL was ‘bullish’ on Friday.

Oracle Corp. shares climbed sharply on Thursday after the company expanded its collaboration with Hewlett Packard Enterprise (HPE) to scale its AI infrastructure, with retail investors turning increasingly bullish ahead of the software giant’s quarterly results next week.

ORCL stock gained 5.7% in Thursday’s session and added another 1.2% in overnight trading, extending its recent momentum. The stock’s move comes as investors position for Oracle’s fiscal first-quarter results, due Sept. 10, with the company’s AI infrastructure buildout and cloud growth expected to remain key areas of focus.

Under the expanded agreement announced at HPE’s quarterly report on Wednesday, Oracle plans to deploy HPE Juniper Networking routing and switching equipment across its AI data centers globally. The deal builds on more than a decade of engineering work between Oracle and Juniper Networks, which HPE acquired in 2024.

HPE said its Juniper Networking platforms already support critical portions of Oracle Cloud Infrastructure’s data center and edge networks. As part of the agreement, HPE has issued Oracle warrants to purchase HPE common stock.

Oracle’s Q1 Expectations

Analysts expect Oracle’s first-quarter revenue to increase 28% to $19.13 billion, which would be the fastest growth rate on record since at least 2017, according to Koyfin data. Adjusted profit is expected to rise 29% to $1.30 per share. 

Investors will be watching whether its massive AI infrastructure spending is translating into sustainable revenue growth and cash generation. 

The biggest focus will be cloud infrastructure growth, which surged 93% in the latest quarter, and whether Oracle can maintain that pace as it brings new AI data-center capacity online.  

Equally important is its $638 billion remaining performance obligation (RPO) backlog, which has exploded on large AI contracts; investors will want to see how quickly that backlog converts into revenue and how much of it represents genuinely incremental demand.   

Retail View On ORCL

On Stocktwits, the retail sentiment for ORCL improved over the past week and was ‘bullish’ as of early Friday. 

“$ORCL way undervalued and beaten down. Holding long and strong through ER (earnings report),” a trader wrote, while another said, “$ORCL loading at $120 feels like hitting the perfect bottom. We're going to hold until at least $300.”

ORCL shares rose 15% last month but remain down 20.2% year to date.

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