‘We’re all kind of in shock.’ Oracle projections analysts slackjawed

John Difucci from Guggenheim Securities said he was “blown”. Derrick Wood from TD Cowen called it “an important quarter.” And Brad Zelnick from Deutsche Bank said, “We are all shocked very well.” He said.

Analysts opened their comments and questions in this way. Oracle’s The three -month earnings call on Tuesday, as the company’s stock price is in the middle of 28% rally after hours. The software seller had reported a new earnings and income lady, but nobody paid attention to it.

Wall Street focused on Oracle’s forward -looking numbers and a large orbit of growth that the company has seen thanks to the explosion of cloud infrastructure and a series of new artificial intelligence agreements.

“There is no better evidence that a seismic change has happened in information processing, Z Zelnick said in his call for earnings.

Analysts are generally effective in boasting companies in their calls for earnings after eating expectations of the results or after an estimated estimate. Managers are accustomed to congratulating in a perfect quarter.

However, the last call for Oracle was different and the investors knew why.

Based on the post-market move, Oracle’s shares are preparing to increase more than the Dot-Com the explosion in Wednesday, 1999. And the shares traded at $ 310 in the extended transaction will bring their records of $ 256.43 last month. Oracle’s market value would exceed $ 870 billion.

Excitement is often around the cloud infrastructure where Oracle competes Amazon– Microsoft And Google. Oracle said that this financial year in this business will increase from 10 billion dollars to 77% last year to 18 billion dollars.

In 2027 financially, in the next three years, this figure will double before reaching $ 73 billion, $ 114 billion and $ 144 billion in the next three years.

CEO Safra Catz said in a profit statement that the company signed a four billion dollar contract with three different customers in a quarter. Openai said he agreed to develop 4.5 Gigawatt US data center capacity with Oracle for a quarter.

Oracle’s remaining performance obligations, which are not yet recognized, increased by 359% to 455 billion dollars compared to the previous year.

Wood from TD Cowen said the RPO figure was “really amazing to see.” Catz asked for more clarity as to how much it would cost the company to create the infrastructure to serve these customers.

Catz said that a difference between Oracle and some of its competitors was in the form of dealing with the property that hosts data centers.

“I know some of our competitors, they like to have buildings,” he said. “This is not our field of expertise. Our expertise is unique technology, unique network, storage – just as we bring these systems together.”

In an interview with CNBC after the report, Davidson analyst Gil Luria called Oracle’s prescribed cloud income figure as “absolutely amazing” and represented the ten -fold increase in the next five years.

But he also paid attention. Microsoft and Google, such as big hypekers, “capacity to other data center providers” strategy, he said. This leads to the use of Oracle by businesses.

“These are not organic customers for Oracle, Lur Luria said, suggesting that you keep the stock. “This is Microsoft, Google and Amazon’s customers who will use Oracle capacity.”

Oracle shares, which entered the report on Tuesday, increased by 46% for the year, while Nasdaq won 13%.

WRISTWATCH: Luria in Oracle’s ‘Surprising’ numbers