Oracle Corp (NYSE: ORCL) Oracle’s Q1 2026 Earnings Call triggers historic 35% stock surge — and changes everything we know about enterprise computing. It was the most unusual phone call Larry Ellison had ever received. “We’ll take all the capacity you have that’s currently not being used anywhere in the world. We don’t care.” That desperate plea for AI inferencing capacity wasn’t just a sales call. It was a signal that the world had fundamentally changed — and Oracle was sitting at the center of it all.

To read the Q1 2026 Earnings Call Press Release Click Here.

The Earnings Call That Shocked Wall Street

On September 9, 2025, Oracle delivered its Q1 2026 earnings call. What followed defied belief:

• Revenue: $14.9 billion — up 12% year-over-year
• Remaining Performance Obligations: $455 billion — up 359%
• Stock surge: 35-36% in a single day
• Larry Ellison‘s net worth: $393 billion — briefly making him the world’s richest person

Even the analysts couldn’t contain themselves. “I think we’re all kind of in shock in a very, very good way,” said Brad Zelnick of Deutsche Bank. “There’s no better evidence of a seismic shift happening in computing than these results.”

To view the Wikipedia page on Larry Ellison, Click Here.

The Inferencing Revolution

While competitors focus on AI training, Oracle spotted something bigger.

“The inferencing market is much larger than the training market,” Ellison explained. “All this money we’re spending on training is going to have to be translated into products that are sold — which is all inferencing.”

Think about it: training builds the AI. Inferencing uses the AI. Every question you ask ChatGPT, every AI-powered recommendation, every automated decision — that’s inferencing. And demand is exploding.

The $6 Million Cloud That Changes Everything

Here’s where Oracle’s advantage becomes staggering. The company has compressed its entire cloud infrastructure — every feature, every function, every security capability — into just three racks. They call it Butterfly.

Cost: $6 million.

The competition? “More than 100 times that,” according to Ellison. This means massive enterprises can now have their own private Oracle Cloud region — no neighbors, no shared infrastructure, full security — at 1% of what competitors charge.

“We have large companies buying basically their own Oracle Cloud regions, multiple Oracle Cloud regions, because they don’t want to have any neighbors in their cloud,” Ellison revealed.

The Database Advantage Nobody Can Copy

Oracle did something competitors cannot easily replicate: they fundamentally rebuilt their database to work with AI.

“We had to change our database, fundamentally change our database, so you can vectorize all data,” Ellison explained. “That’s the form in which large language models understand information.”

The result? Companies can now ask any question about their private enterprise data — combined with public data — while keeping sensitive information secure.

“Unless you have a database that is secure and reliable and linked to all of the popular LLMs — and we’ve done all of that — this can be very hard for you to deliver a ChatGPT-like experience on top of your data,” Ellison said. “That’s a unique value proposition for Oracle.”

“This May Be an Extinction Event” – Larry Ellison – Q1 2026 Earnings Call

When Deutsche Bank’s Zelnick asked about competitors without Oracle’s integrated advantages, he didn’t mince words: “This may be an extinction event. Ellison’s response was measured but devastating. “We have substantial advantages because we are an infrastructure company and we are an application company,” he said. Oracle isn’t just building AI tools — they’re building AI application generators, then using those generators to build actual applications, which provides insights to improve the generators further.

“It’s a huge advantage to be on both sides of that equation.”

Applications That Are “Nothing But AI”

Oracle has stopped charging separately for AI in its applications.

Why? Because the applications are AI.

“The new ones that we’re building — they’re nothing other than a bunch of AI agents that we generate that are linked together with workflow. That’s all they are,” Ellison explained. “How do you charge separately for that?”

The Medical Gambit

Oracle is taking on Epic in healthcare — and betting that size wins.

“We decided to go into the medical business against Epic, believing that we could solve much more of the problem because we’re much bigger than they are,” Ellison said. “And by the way, we’re much bigger than Workday or ServiceNow.”

The strategy: integrated suites where all pieces are engineered to fit together, eliminating the system integration nightmare that plagues enterprises using multiple vendors.

What Happens Next

At Oracle AI World next month, the company will demonstrate something unprecedented: the ability for any employee to ask any question about all of Oracle’s customer data instantly.

“Who’s your number one prospect in my territory? What product should I be selling them next? What are the best references for me to use?” Ellison listed. “You can get all of those questions answered immediately if you’re a salesperson.”

Is anyone else doing this? “Not that I know of,” Ellison said. “It’s a huge advantage.”

The bottom line:

The phone call asking for “all the capacity you have anywhere in the world” wasn’t an anomaly. It was the future announcing itself. Oracle answered — and in one day, everything changed.

To view Oracle’s Investor Relations page, Click Here.