Oracle shares rise 4% as AI backlog hits $664 billion

Oracle Corp announced first-quarter results that topped Wall Street estimates, signaling improving returns on its aggressive artificial intelligence investments. Shares jumped 4% in extended trading following the report. Revenue bookings for AI cloud contracts reached more than $30 billion during the fiscal quarter, lifting the total backlog to $664 billion. This figure surpassed analysts' estimate of $639.89 billion. Finance chief Hilary Maxson stated the vast majority of these orders utilized prepayment or customer-owned hardware models. Consequently, new contracts avoid requiring significant incremental capital for chips from Oracle. The strategy supports the company's annual spending target of $90 billion to $95 billion while reducing pressure on the balance sheet. Despite a slump exceeding 21% this year, investor confidence grew as demand for cloud computing services among enterprises intensified. The report highlighted strong conversion of backlog into realized revenue.