Zaid Admani

Total revenues grew 22% to $17.2 billion, beating Wall Street estimates.

But the real headline is the cloud infrastructure business, which is basically Oracle's data center and AI computing segment.

Revenues there surged 84% to $4.9 billion, accelerating from the 68% growth last quarter and beating Wall Street expectations.

And it's Oracle's outlook that got investors really excited.

Oracle raised its fiscal 2027 revenue forecast to $90 billion, well above the $86.6 billion that analysts were expecting.

Management said that demand for AI cloud computing continues to outpace supply and that some of their biggest AI customers have recently strengthened their financial positions, which just means that more money is coming Oracle's way.

So I got to say, this was a clutch performance for Oracle.

The stock had lost more than half its value since its peak back in September due to cost concerns tied to its AI data center build out.

I think investors had become skeptical about Oracle's ability to afford all the AI building or if the AI demand would even materialize.

But I think the acceleration in cloud revenue growth should put some of those concerns to rest.

Top of that, Oracle is taking steps to manage costs.

The company spent $18.6 billion in capital expenditure this quarter, which was higher than expected.

But Oracle kept its full-year CapEx forecast steady at about $50 billion.

So that suggests that spending isn't spiraling out of control.

The company is also making a strategic shift to where some of their cloud customers will pay for their own chips up front, which should take the pressure off of Oracle's balance sheet.

So investors seem to be pretty happy with this earnings report.

The stock is up around 10% this morning at the time of this recording and on track for its best day since the company announced the $300 billion deal with OpenAI back in September.

Let's talk about some stocks making moves today.

Shares of Nebius are jumping this morning after Nvidia announced a $2 billion investment in the company.

Nebius is a Neo cloud company that's emerged recently.