Top Stories — Wednesday, September 10, 2025
What is trending in the USA today? Here is Breaking News:
- 'We're all kind of in shock.' Oracle's revenue projections leave analysts slackjawed — CNBC
- Klarna prices IPO at $40, above online lender's expected range — CNBC
- Asia markets open mostly higher ahead of key China inflation data — CNBC
'We're all kind of in shock.' Oracle's revenue projections leave analysts slackjawed
Source: CNBC • Published: 9/10/2025, 6:00:15 AM
John DiFucci from Guggenheim Securities said he was "blown away." TD Cowen's Derrick Wood called it a "momentous quarter." And Brad Zelnick of Deutsche Bank said, "We're all kind of in shock, in a very good way."
That's how the analysts opened their comments and questions during Oracle's quarterly earnings call on Tuesday, as the company's stock price was in the midst of a 28% after-hours rally. The software vendor had just reported an earnings and revenue miss, but nobody was paying attention to that.
Wall Street was singularly focused on Oracle's forward-looking numbers and a massive growth trajectory that the company now sees thanks to its booming cloud infrastructure business and a host of new artificial intelligence deals.
"There's no better evidence of a seismic shift happening in computing than these results that you just put up," Zelnick said on the earnings call.
Analysts are often effusive in their praise of companies on their earnings calls after results beat expectations or a forecast is particularly impressive. Executives are used to being congratulated on an excellent quarter.
But the latest Oracle call was different, and investors knew why.
Based on its post-market move, Oracle's stock is poised to surge more on Wednesday than it has in any single session since the dot-com boom in 1999. And the shares, trading at $310 in extended trading, are set to zoom past their record close of $256.43, which they hit last month. Oracle's market cap would jump past $870 billion.
The excitement is mostly around cloud infrastructure, where Oracle competes with Amazon, Microsoft and Google. Oracle said that revenue this fiscal year in that business will jump 77% to $18 billion from $10 billion in the last year.
In fiscal 2027, the figure will almost double to $32 billion, before reaching $73 billion, $114 billion and $144 billion in the subsequent three years.
CEO Safra Catz said in the earnings statement that the company signed four multibillion-dollar contracts with three different customers in the quarter. OpenAI said during the quarter that it agreed to to develop 4.5 gigawatts of U.S. data center capacity with Oracle.
Oracle's remaining performance obligations, a measure of contracted revenue that has not yet been recognized, soared to $455 billion, up 359% from a year earlier.
Wood from TD Cowen said the RPO figure is "just really amazing to see." He asked Catz for more clarity on how much it was going to cost the company to build out the infrastructure needed to service those customers.
Catz said that one difference between Oracle and some of its rivals is in the way it deals with the property that houses data centers.
"I know some of our competitors, they like to own buildings," she said. "That's not really our specialty. Our specialty is the unique technology, the unique networking, the storage — just the whole way we put these systems together."
In an interview with CNBC's "Fast Money" after the report, D.A. Davidson analyst Gil Luria called Oracle's projected cloud revenue figure "absolutely staggering," and said it represents a tenfold increase in the next five years.
But he also had a word of caution. The big hyperscalers like Microsoft and Google, he said, have instituted a strategy of "offloading their capacity to other data center providers." That's leading businesses to use Oracle.
"These are not organic customers to Oracle," said Luria, who recommends holding the stock. "This is Microsoft, Google and Amazon's customers that will use Oracle capacity."
Heading into Tuesday's report, Oracle shares were up 46% for the year, while the Nasdaq had gained 13%.
Klarna prices IPO at $40, above online lender's expected range
Source: CNBC • Published: 9/10/2025, 5:58:14 AM
Online lender Klarna priced its IPO at $40 per share on Tuesday, above its expected range, in a deal that values the Swedish company at about $15 billion.
Klarna, known for its popular buy now, pay later products, said it raised $1.37 billion for the company and existing shareholders, who are looking to exit a portion of their long-held positions. The company will list its shares on the New York Stock Exchange under the symbol "KLAR.
The public markets have shown an increased appetite for tech IPOs of late, with companies like crypto firm Circle and software vendor Figma soaring in their highly anticipated debuts. Klarna, which competes with Affirm, was initially aiming to go public earlier this year, but put its plans on hold due to U.S. President Donald Trump's April announcement of reciprocal tariffs on dozens of countries.
Widely known for its short-term, interest-free financing products, Klarna has attempted in recent months to rebrand itself as more of a digital retail bank. Its IPO will be a test of Wall Street's excitement about the direction of its business.
Klarna disclosed a net loss of $53 million in the second quarter, widening from $18 million in the same period a year go. Revenue climbed 20% from a year earlier to $823 million over the stretch.
Klarna makes money by charging merchants that use its online payment tools a small fee on every transaction. It also generates income from interest on longer-term financing products and late fees.
Of the total amount being raised, $1.17 billion is going to shareholders with just $200 million going to the company.
Asia markets open mostly higher ahead of key China inflation data
Source: CNBC • Published: 9/10/2025, 5:49:58 AM
Asia-Pacific markets opened mostly higher Wednesday ahead of key August inflation data from China.
The mainland's August consumer price index is expected to fall 0.2% from the previous year, according to economists polled by Reuters, and compares with July's flat reading. Meanwhile, the producer price index is expected to fall 2.9% year on year, improving from the 3.6% drop in July.
Japan's Nikkei 225 benchmark opened 0.2% higher, while the Topix index was flat.
Over in Australia, the S&P/ASX 200 opened flat.
Hong Kong's Hang Seng Index was set to open higher, with the futures contract trading at 25,957, against the index's last close at 25,938.13.
South Korea's Kospi index climbed 0.76% in early trade, while the small-cap Kosdaq rose 0.71%. The country's seasonally adjusted unemployment rate rose slightly to 2.6% in August compared with July's 2.5%, according to government data.
U.S. equity futures rose slightly in early Asian hours, as traders looked ahead to the release of the latest producer price index Wednesday stateside and the consumer price index data on Thursday, which will offer more insight into the impact of inflation on the economy.
Overnight, all three key benchmarks in the U.S. closed at all-time highs as investors moved past concerns about disappointing jobs data and bet on Federal Reserve rate cuts.
The S&P 500 index settled up 0.27% at 6,512.61, while the Nasdaq Composite gained 0.37% to end the day at 21,879.49, with the latter hitting a new all-time intraday high as well. The Dow Jones Industrial Average finished up 196.39 points, or 0.43%, at 45,711.34, thanks to a surge in UnitedHealth shares.
— CNBC's Sean Conlon and Sarah Min contributed to this report.
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