Oracle (ORCL) shares skyrocketed 20.49% in after-hours trading on Tuesday following the release of its fiscal 2026 first-quarter earnings report, which showcased robust cloud growth and revealed multiple billion-dollar artificial intelligence (AI) contracts.

While the company's Q1 results slightly missed analyst expectations, with adjusted earnings per share of $1.47 versus the $1.48 estimate and revenue of $14.93 billion compared to the projected $15.04 billion, investors were captivated by Oracle's impressive cloud performance and future outlook.

Key highlights from the earnings report include: - Cloud revenue surged 28% year-over-year to $7.2 billion - Cloud Infrastructure (IaaS) revenue jumped 54% to $3.3 billion - Total Remaining Performance Obligations (RPO) skyrocketed 359% to $455 billion

Oracle CEO Safra Catz emphasized the company's momentum, stating, "We signed four multi-billion-dollar contracts with three different customers in Q1. This resulted in RPO contract backlog increasing 359% to $455 billion. It was an astonishing quarter — and demand for Oracle Cloud Infrastructure continues to build."

Perhaps most exciting for investors was Oracle's ambitious forecast for its Cloud Infrastructure business. Catz projected, "We expect Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year — and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years."

The company's rapid expansion in AI infrastructure was further highlighted by CTO Larry Ellison, who noted, "MultiCloud database revenue from Amazon, Google and Microsoft grew at the incredible rate of 1,529% in the first quarter." This growth underscores Oracle's strong positioning in the booming AI market.

With its massive backlog of contracts, accelerating cloud growth, and optimistic long-term projections, Oracle has clearly demonstrated its potential to be a major player in the AI-driven cloud computing landscape. This outlook, combined with the company's strong quarterly performance, appears to be the primary catalyst for the stock's dramatic after-hours surge.