Oracle shares (ORCL) jumped more than 7% in after-hours trading Thursday after the software firm reported massive growth in its cloud infrastructure business.
Oracle Cloud Infrastructure, the company's cloud computing business that rents out computing power and data center capacity, saw revenue grow 121% year over year to $7.4 billion. Growth in this segment has ramped up, from 55% in fiscal Q1 2026 to 68%, 84%, 93%, and now 121% over the past five quarters.
Total cloud revenue rose 62% to $11.6 billion, while overall revenue grew 30% to $19.3 billion, a new record for the nearly 50-year-old firm.
Oracle said that demand for its AI compute services is still growing faster than it can add capacity. It signed more than $30 billion worth of new AI cloud contracts during the quarter, helping to push its total backlog of contracted business to $664 billion.
The company continues to try to build enough infrastructure to meet demand. Since the end of last quarter, Oracle said it has delivered more than 300,000 GPUs to AI cloud customers, nearly three times the capacity it delivered during the previous quarter. It also brought another 850 megawatts of data center capacity online.
Oracle spent nearly $28.5 billion on capital expenditures during the quarter, more than triple the $8.5 billion from a year earlier. Despite also generating a record $23.1 billion in operating cash flow, the heavy spending left the firm with roughly $5 billion in negative free cash flow.
Oracle also rolled out a new AI Data Platform, aiming to make it easier for businesses to connect AI models and agents with their own private company data.