Oracle Shares Surge 32% Amidst Record Remaining Performance Obligations.

Oracle's shares surged 32% premarket after reporting a massive surge in remaining performance obligations (RPO), exceeding analysts' expectations. Jefferies maintained its Buy rating and raised the price target, citing the strong RPO growth as a key driver of the positive reaction. Analysts praised Oracle's ability to adapt to the shift towards cloud-based services, leading to increased customer commitments.

Oracle Corporation's (ORCL) shares surged 32% premarket after the company reported a massive surge in its remaining performance obligations (RPO), exceeding analysts' expectations. The RPO, representing unrecognized contract revenue, skyrocketed 359% year-over-year to $455 billion, according to the company's Q1 fiscal 2026 earnings report Oracle’s Cloud Engine: 359% RPO Growth Ignites 22% Stock Surge^[1].

During the regular session, Oracle's stock closed at $241.63, up a modest 1.32%. However, the dramatic after-hours jump reflects strong market confidence in the explosive growth of its cloud computing business. The company signed four multi-billion-dollar cloud contracts with three distinct customers during the quarter.

Financial highlights include a total quarterly revenue of $14.9 billion, up 12% (11% in constant currency). Cloud revenue contributed $7.2 billion, growing 28% (27% in constant currency). Infrastructure as a Service (IaaS) revenue surged 55% to $3.3 billion, while Software as a Service (SaaS) revenue increased 11% to $3.8 billion. Traditional software revenue declined 1% to $5.7 billion, underscoring cloud services as the clear growth driver.

Jefferies maintained its Buy rating and raised the price target, citing the strong RPO growth as a key driver of the positive reaction. Analysts praised Oracle's ability to adapt to the shift towards cloud-based services, leading to increased customer commitments.

Oracle's strategic developments also include a 1,529% increase in multicloud database revenue, driven by partnerships with Amazon, Microsoft, and Google. The company plans to add 37 new data centers to support hyperscaler alliances, bringing the total to 71. Next month, Oracle will launch the Oracle AI Database, a new product enabling clients to apply large language models for database analysis.

The company declared a quarterly dividend of $0.50 per share, payable on October 23 to shareholders of record as of October 9. Management emphasized that artificial intelligence and multicloud strategy will serve as long-term growth engines and projected that RPO will soon surpass the half-trillion-dollar mark.

Oracle's impressive Q1 results underscore the company's robust performance in the cloud computing sector, driving investor confidence and share price appreciation.

Oracle’s Cloud Engine: 359% RPO Growth Ignites 22% Stock Surge^[1]: https://nai500.com/blog/2025/09/oracles-cloud-engine-359-rpo-growth-ignites-22-stock-surge/