Oracle’s AI Cloud Surges Even as Stock Falls 20% This Year

Overview

• Oracle shares are down about 20% this year as investors reassess AI spending payoffs and geopolitical risks weigh on sentiment.
• Cloud infrastructure revenue jumped more than 80% to $4.9 billion in the most recent quarter, reflecting heavy AI capacity demand.
• Management called the quarter exceptional, with total revenue and non‑GAAP earnings per share each rising at least 20% for the first time in 15 years.
• Oracle guides gross margin of roughly 30% to 40% on GPU compute, while general‑purpose compute and related services carry higher margins.
• The company’s multi‑cloud database service delivers an estimated 60% to 80% gross margin, supporting management’s view that its data center business is highly profitable overall.