Oracle shares jump 4% as $664 billion AI backlog beats $639.89 billion estimates

Oracle Corp reported quarterly earnings that exceeded Wall Street estimates as aggressive investments in artificial intelligence began showing signs of returning profit without straining its balance sheet. Shares rose 4% in extended trading following the announcement of a sharp increase in revenue backlog to $664 billion, surpassing the analyst estimate of $639.89 billion according to Reuters reports. The enterprise software giant delivered first-quarter total revenue of $19.35 billion, compared against an LSEG consensus expectation of $19.14 billion. Net income increased 60% to $4.7 billion from the previous year's figure of $2.93 billion. Cloud revenue grew 62% year-over-year to $11.6 billion, driven primarily by a 121% rise in cloud infrastructure services while application revenue grew 10%. Oracle stated it delivered an additional 850 megawatts of data center capacity and provided more than 300,000 GPUs to customers during the quarter. Finance chief Hilary Maxson clarified that most new contracts utilized prepayment or client-provided hardware, meaning they did not require incremental capital from the company. Total annual spending targets remain between $90 billion and $95 billion. The stock has declined 21% since the start of the year despite this strong performance.