Shares of OFSS rise over 7 percent after parent Oracle's shares rallied on $0.5 trillion cloud outlook

Oracle had said on September 9 that it expects booked revenue for the Cloud Infrastructure business to exceed half a trillion dollars on rising demand for low-cost cloud services.

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26 Aug, 2025 12:21

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Shares of Oracle Financial soared over 7 percent in early trade on September 10 after the parent company and NYSE-listed Oracle Corp issued an ambitious outlook for its cloud business, sending its shares to a record high.

Oracle had said on September 9 that it expects booked revenue for the Cloud Infrastructure business to exceed half a trillion dollars on rising demand for low-cost cloud services.

"Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars," said CEO Safra Catz. For the September quarter, Oracle sees total revenue to rise to 12-14 percent and sees cloud revenue growth between 32-36 percent. Given the strong demand for AI business tools, Oracle is likely positioning itself to capture the demand, according to some IT analysts.

"We made it very easy for our customers to directly connect all their databases ... to the world's most advanced AI reasoning models — ChatGPT, Gemini, Grok, all of which are uniquely available in the Oracle Cloud," Oracle CEO Catz said during the earnings call.

According to Bloomberg, Oracle Corp's 28 percent rise during post-market trading is the biggest gain for the shares since 1999. If Oracle Corp's market rally sustains during the trading session on September 10, the company would surpass JPMorgan Chase, Walmart, Eli Lilly and Visa in terms of market capitalisation.

Riding on an increasing demand for its cloud solutions, OFSS said its license and cloud revenue grew 13 percent over the last fiscal year.

"...The cloud-based solutions help organisations focus on smaller initiatives that deliver tangible and incremental value. Organisations can incrementally optimise their operations, boost efficiency, and thereby significantly reducing the transformation risk," Managing Director and the CEO Makarand Padalkar said during the AGM earlier this month.

On a YTD basis, shares of Oracle Financial Services are down 28 percent.