Oracle's Stock Surges on AI Demand, Boosting Cloud Infrastructure Sales Forecast
ByAinvest
Tuesday, Sep 9, 2025 5:40 pm ET2min read
ORCL--
A standout metric was Oracle's Remaining Performance Obligations (RPO) skyrocketing 359% to $455 billion, driven by four multi-billion-dollar contracts [2]. CEO Safra Catz projected ambitious growth for Oracle Cloud Infrastructure, forecasting revenue to reach $144 billion within four years. The company's MultiCloud database revenue from partnerships with Amazon, Google, and Microsoft grew an exceptional 1,529% in Q1 [3].
The company declared a quarterly dividend of $0.50 per share, payable on October 23, 2025 [1]. Oracle's Q1 FY2026 results show remarkable transformation into a cloud powerhouse. Total revenue grew $14.9 billion (12% YoY), driven by exceptional cloud performance at $7.2 billion (28% YoY). The standout metric is Remaining Performance Obligations (RPO) exploding to $455 billion, a staggering 359% increase, reflecting massive long-term contract commitments [1].
Breaking down the cloud segments reveals divergent growth trajectories: Cloud Infrastructure (IaaS) surged 55% to $3.3 billion while Cloud Applications (SaaS) grew more modestly at 11% to $3.8 billion. Both Fusion and NetSuite ERP products showed healthy growth around 16-17%, each reaching $1 billion in quarterly revenue [1].
Operating performance shows disciplined execution with non-GAAP operating income up 9% to $6.2 billion and non-GAAP EPS increasing 6% to $1.47. However, GAAP EPS declined 2% to $1.01, suggesting higher non-cash expenses [1]. The most significant revelation comes from CEO Safra Catz's ambitious five-year plan for Cloud Infrastructure, projecting growth from $18 billion this fiscal year to an astonishing $144 billion within four years. This represents a 68% compound annual growth rate - extraordinarily aggressive for a company Oracle's size [1].
The MultiCloud strategy with Amazon, Google, and Microsoft is yielding exceptional results with 1,529% growth. With plans to expand from 34 to 71 datacenters for hyperscaler partners and launch the new Oracle AI Database service, Oracle is positioning itself at the intersection of database leadership and AI revolution [3].
Oracle's Q1 earnings per share (EPS) of $1.47 missed by $0.01 and revenue of $14.93 billion missed by $110 million. However, the company's strong cloud performance and significant RPO growth overshadowed these misses [2]. Shares surged over 25% in after-hours trading following the announcement, reflecting investor confidence in Oracle's cloud growth prospects [2].
References:
[1] https://www.stocktitan.net/news/ORCL/oracle-announces-fiscal-year-2026-first-quarter-financial-ynnmz48k53wa.html
[2] https://seekingalpha.com/news/4493495-oracle-non-gaap-eps-of-1_47-misses-by-0_01-revenue-of-14_93b-misses-by-110m
[3] https://www.constellationr.com/blog-news/insights/oracle-q1-misses-sees-oci-revenue-surging-over-next-4-years
Oracle reported Q1 adjusted EPS of $1.47 on 12% YoY revenue growth to $14.9 billion, beating estimates. The company now expects cloud infrastructure sales to jump 77% to $18 billion this fiscal year, up from a June forecast of more than 70%. Shares surged over 25% in after-hours trading, with CEO Safra Catz citing a "brilliant start" to the new fiscal year and plans for several new multibillion-dollar contracts.
Oracle (NYSE:ORCL) reported robust fiscal year 2026 first-quarter results, with total revenue reaching $14.9 billion, a 12% year-over-year (YoY) increase. The company's cloud performance was particularly impressive, with cloud revenue growing 28% to $7.2 billion and cloud infrastructure revenue surging 55% to $3.3 billion [1].A standout metric was Oracle's Remaining Performance Obligations (RPO) skyrocketing 359% to $455 billion, driven by four multi-billion-dollar contracts [2]. CEO Safra Catz projected ambitious growth for Oracle Cloud Infrastructure, forecasting revenue to reach $144 billion within four years. The company's MultiCloud database revenue from partnerships with Amazon, Google, and Microsoft grew an exceptional 1,529% in Q1 [3].
The company declared a quarterly dividend of $0.50 per share, payable on October 23, 2025 [1]. Oracle's Q1 FY2026 results show remarkable transformation into a cloud powerhouse. Total revenue grew $14.9 billion (12% YoY), driven by exceptional cloud performance at $7.2 billion (28% YoY). The standout metric is Remaining Performance Obligations (RPO) exploding to $455 billion, a staggering 359% increase, reflecting massive long-term contract commitments [1].
Breaking down the cloud segments reveals divergent growth trajectories: Cloud Infrastructure (IaaS) surged 55% to $3.3 billion while Cloud Applications (SaaS) grew more modestly at 11% to $3.8 billion. Both Fusion and NetSuite ERP products showed healthy growth around 16-17%, each reaching $1 billion in quarterly revenue [1].
Operating performance shows disciplined execution with non-GAAP operating income up 9% to $6.2 billion and non-GAAP EPS increasing 6% to $1.47. However, GAAP EPS declined 2% to $1.01, suggesting higher non-cash expenses [1]. The most significant revelation comes from CEO Safra Catz's ambitious five-year plan for Cloud Infrastructure, projecting growth from $18 billion this fiscal year to an astonishing $144 billion within four years. This represents a 68% compound annual growth rate - extraordinarily aggressive for a company Oracle's size [1].
The MultiCloud strategy with Amazon, Google, and Microsoft is yielding exceptional results with 1,529% growth. With plans to expand from 34 to 71 datacenters for hyperscaler partners and launch the new Oracle AI Database service, Oracle is positioning itself at the intersection of database leadership and AI revolution [3].
Oracle's Q1 earnings per share (EPS) of $1.47 missed by $0.01 and revenue of $14.93 billion missed by $110 million. However, the company's strong cloud performance and significant RPO growth overshadowed these misses [2]. Shares surged over 25% in after-hours trading following the announcement, reflecting investor confidence in Oracle's cloud growth prospects [2].
References:
[1] https://www.stocktitan.net/news/ORCL/oracle-announces-fiscal-year-2026-first-quarter-financial-ynnmz48k53wa.html
[2] https://seekingalpha.com/news/4493495-oracle-non-gaap-eps-of-1_47-misses-by-0_01-revenue-of-14_93b-misses-by-110m
[3] https://www.constellationr.com/blog-news/insights/oracle-q1-misses-sees-oci-revenue-surging-over-next-4-years
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