Oracle shares spiked 22% in extended trading on Tuesday after the database software maker indicated hefty growth prospects due to new cloud contracts, even as earnings and revenue missed estimates.

Here’s how the company did in comparison with LSEG consensus:

• Earnings per share: $1.47 adjusted vs. $1.48 expected
• Revenue: $14.93 billion vs. $15.04 billion expected

Revenue increased 12% from $13.3 billion a year earlier during the quarter, which ended on Aug. 31, according to a statement. Net income was about flat at $2.93 billion, or $1.01 per share, compared to $2.93 billion, or $1.03 per share, in the same quarter last year.

Oracle said its remaining performance obligation, a measure of contracted revenue that has not yet been recognized, now stands at $455 billion, up some 359% from a year earlier. During the quarter OpenAI said it signed an agreement with Oracle to develop 4.5 gigawatts of U.S. data center capacity.

Alongside larger cloud providers such as Microsoft, Oracle has been one of the big winners of the artificial intelligence boom, due to its cloud infrastructure business and its access to Nvidia’s graphics processing units (GPUs) needed for large workloads. CEO Safra Catz said in the statement that the company signed four multibillion-dollar contracts with three different customers in the quarter.

Also in the quarter, Oracle said cloud rival Google’s Gemini AI models would become available on Oracle’s cloud infrastructure.

In the statement, Larry Ellison, Oracle’s co-founder, chairman and technology chief, said that in October the company will bring out an Oracle AI Database service that will allow for running AI models from OpenAI and other companies atop client data stored in Oracle databases. The effort would deepen Oracle’s product integration with OpenAI. In August, Oracle said it has brought OpenAI’s new GPT-5 AI model to its cloud applications.

Oracle’s generated $3.3 billion in revenue from cloud infrastructure, up 55% from a year earlier. The growth rate was 52% in the fiscal fourth quarter.

According to the statement, Oracle now sees $18 billion in cloud infrastructure revenue in the 2026 fiscal year, according to the statement. That suggests 75% growth from the $10.3 billion total in fiscal 2025. The company called for the sum to reach $32 billion, $73 billion, $114 billion and $144 billion in 2027, 2028, 2029 and 2030 fiscal years.

Kirk Materne, an Evercore analyst with the equivalent of a buy rating on Oracle stock, said in a note to clients that he had anticipated $108 billion in fiscal 2029 cloud infrastructure revenue.

In July, Microsoft said it produced $75 billion in revenue from its Azure cloud infrastructure in the past 12 months. Market leader Amazon’s cloud revenue in the same period approached $112 billion.

Oracle shares hit a record last month and are up 45% in 2025 as of Tuesday’s close, while the S&P 500 index has gained 11%.

A gain of 22% or better on Wednesday would represent the best day for the stock since the dot-com boom of 1999 and its third-sharpest rally ever. It would also lift the company’s market cap past $800 billion.

Executives will discuss the results and issue guidance on a conference call starting at 5 p.m. ET.

This is developing news. Please check back for updates.

— CNBC’s Ari Levy contributed to this report

WATCH: Oracle shares spike more than 12% despite earnings and revenue miss

Google’s cloud chief Thomas Kurian on Tuesday explained how the tech giant is already monetizing its various artificial intelligence services to generate revenue.

“We’ve made billions using AI already,” said Kurian, speaking at the Goldman Sachs Communacopia and Technology Conference in San Francisco.

Kurian said that Google Cloud’s backlog of customer demand is growing faster than its revenue.

“Our backlog is now at $106 billion — it is growing faster than our revenue,” he said. “More than 50% of it will convert to revenue over the next two years.”

During its most recent second quarter, Google parent Alphabet in July reported revenue of $13.62 billion for its cloud computing business, which was a 32% increase from the year prior. Alphabet’s net income increased to $28.20 billion, up nearly 20% from the previous year. While Google’s cloud unit lags Microsoft and Amazon’s cloud units, it’s growing faster than them.

Here’s what Kurian said about how Google Cloud is monetizing AI:

Last month, Google won a $10 billion cloud contract from Meta spanning six years. Meta had largely been reliant on Amazon Web Services for cloud infrastructure, though it also uses Microsoft Azure.

Google One, a popular personal cloud storage subscription, offers a basic monthly service to users for $1.99 a month. Earlier this year, the company offered a new subscription tier called “Google AI Ultra,” which offers exclusive access to the company’s most “cutting edge” AI products with 30 terabytes of storage for $249.99 per month.

Kurian gave an example of Google Cloud’s cybersecurity subscription tiers, saying “we’ve seen huge growth in that.”

WATCH: Alphabet antitrust ruling the ‘dream scenario’ for Google, says Wedbush’s Dan Ives

Apple increased the starting price of one of its iPhone models and replaced another with a pricier device on Tuesday, as analysts and investors widely expected.

Apple’s iPhone 17 Pro now starts at $1,099. That’s $100 more than last year’s iPhone 16 Pro.

Apple also replaced last year’s $899 iPhone 16 Plus in its lineup with a new thin and light device called the iPhone 17 Air, which starts at $999, or $100 more.

Apple and its CEO Tim Cook have largely managed the Trump administration’s tariffs, and the company has successfully reoriented much of its supply chain to import iPhones to the U.S. from India, instead of China, where tariffs are higher.

Still, investors and analysts widely believed Apple would raise iPhone prices as the company expects to spend more than $1 billion this quarter on tariff costs.

Apple, as expected, tried to soften the price increase blow by pointing out that this year’s entry-level phones now all come with 256GB of storage, as opposed to the 128GB that was standard on last year’s phones. Apple did not mention tariffs or anything about how it manufactures iPhones.

Apple charges users more when they get extra storage on an iPhone. Upgrading to 512GB of storage on an iPhone 17 Air costs $200 this year.

“iPhone 17 Pro starts at $1099, the same great price as last year’s 256 gigabyte iPhone 16 Pro,” said Apple’s chief marketer Greg Joswiak during the launch event.

Apple is judicious about raising hardware prices in the U.S.

This is the first time that Apple’s entry-level Pro phone has gotten a price increase over $999 since the debut of its predecessor iPhone X in 2017.

On Tuesday, Apple kept the starting price of its entry-level phone, the iPhone 17, steady at $799. Its most premium device, the iPhone 17 Pro Max, didn’t get a bump either.

Apple left prices the same for the other new hardware items it announced on Tuesday. Its new AirPods, which can translate conversations in real time, still retail for $249, the same price as the first AirPods Pro in 2019.

Apple also kept Apple Watch prices stable.

The Apple Watch Series 11 is $399 for the smaller version, the same price as it has been since 2018, when Apple was on Series 4, and Apple’s high-end sport watch, the Ultra 3, remains $799 and up.