Why Are Oracle Stocks Rising So Fast Today?

Oracle (NYSE:ORCL) shares are rising in Tuesday morning trading. The company’s stock was up 12.3% as of 11:30 a.m. Eastern time, according to data from S&P Global Market Intelligence.

After the market closed yesterday, Oracle reported its results for the first quarter of its current fiscal year (which ended Aug. 30). The company beat Wall Street in sales and profit for the period, and also announced promising new cloud partnerships with Amazon AND Alphabet.

Cloud momentum drives Oracle’s Q1 success

Oracle reported adjusted non-GAAP earnings per share of $1.39 on revenue of $13.3 billion in the fiscal first quarter. The company’s earnings results beat analysts’ average forecast by $0.06 per share, and sales came in $60 million ahead of the average forecast.

Sales rose 6.8% year over year in the quarter, but other growth metrics were much more encouraging. Remaining performance commitments, a metric that tracks services that have been contracted but not yet delivered and recorded as sales, rose 53% year over year to $99 billion. Meanwhile, total cloud revenue rose 21% year over year to $5.6 billion.

Within the overall cloud solutions category, infrastructure as a service (IaaS) sales grew 45% year over year to $2.2 billion, and cloud application software as a service (SaaS) sales grew 10% year over year to $3.3 billion.

Oracle Issues Solid Guidance, Wins New Cloud Partnerships

For the fiscal second quarter, Oracle expects sales to grow 7% to 9% in constant currency. Management expects total cloud revenue to grow 23% to 25% on a currency-adjusted basis, and adjusted earnings per share to be in the range of $1.42 to $1.46 — about 8% growth at the midpoint of the guidance range.

In addition to solid guidance for the future, the company also unveiled new cloud integrations. Yesterday, along with its earnings update, Oracle revealed a new partnership with Amazon Web Services (AWS) and introduced a new service that will allow AWS users to use Oracle Autonomous Database and Oracle Exadata Service. Oracle also highlighted a similar offering for Alphabet’s Google Cloud infrastructure service.

Compared to Amazon, Oracle is still a small player in the cloud infrastructure market, Microsoftand Alphabet, but it has shown some encouraging momentum. New database integrations with leading IaaS providers should help the company expand its overall reach in the space and become a bigger part of customers’ multicloud strategies.

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Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s board of directors. Keith Noonan has no holdings in any of the stocks mentioned. The Motley Fool owns and recommends shares of Alphabet, Amazon, Microsoft, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 call options on Microsoft and short January 2026 $405 call options on Microsoft. The Motley Fool has a disclosure policy.