Oracle Stock Soars to New High Following $30 Billion Contract

TradingKey - Oracle Corporation (ORCL), the database giant, saw its stock hit consecutive record highs after announcing a $30 billion cloud computing contract. This order's value is three times the company's data center revenue forecast for fiscal year 2025.

On Monday, June 30, prior to the market opening, Oracle released a statement from CEO Safra Catz: "Oracle is off to a strong start in (fiscal 2026)," and "Our multicloud database revenue continues to grow at over 100%, and we signed multiple large cloud services agreements including one that is expected to contribute more than $30 billion in annual revenue starting in (2028)."

On June 30, Oracle's stock surged at the opening, peaking at $228.22, an 8.5% increase, and closed the day up 3.99% at $218.63. Both the intraday and closing prices set new all-time highs. On July 1, Oracle's stock closed at $218.96, continuing to break records.

Analysts noted that this substantial deal marks a significant milestone for Oracle. The order's value is nearly triple Oracle's fiscal year 2025 data center revenue, which stands at $10.3 billion. Oracle did not disclose the customer's identity for this contract.

Benefiting from the Data Center Expansion Wave

Oracle's stock has performed well this year, rising about 30% year-to-date with a market capitalization exceeding $600 billion.

In January, the White House announced the "StarGate" initiative, advanced by OpenAI, SoftBank Group, and Oracle. Previously, reports suggested Oracle would build the first data centers for OpenAI. Earlier this month, Safra Catz mentioned that the StarGate project is still under construction, with some revenue already stemming from OpenAI, though the majority of growth comes from contracts with other enterprises.

Oracle's data center infrastructure business grew by 52% in the latest quarter, driven by increasing demand for AI computing capabilities. Oracle is one of the beneficiaries of the data center expansion trend.