Oracle’s stock price rose 6.4% on Friday, May 1, 2026. The rally followed a report from OpenAI CFO Sarah Friar stating the company is outperforming growth expectations. This update eased market concerns for Oracle, which provides AI cloud infrastructure to OpenAI through a multi-billion dollar agreement.
Sentiment improved further following reports of a new six-year supply agreement with Australian data-center manufacturer Datapod. This contract is valued at approximately $1.65 billion. Additionally, Wedbush analysts reiterated an Outperform rating, characterizing the recent stock selloff as an overreaction.
Oracle continues aggressive capital spending to expand its AI and cloud infrastructure. These investments are designed to support a performance obligation backlog totaling $553 billion.