Oracle Corporation’s stock jumped 28% despite reporting an earnings and revenue miss following its announced fiscal 2026 Q1 results.
The tech giant reported that its total Remaining Performance Obligations increased by 359% year-over-year to $455 billion, while its total quarterly revenues rose by 12% in USD, reaching $14.9 billion.
Cloud revenues increased by 28% in USD and 27% in constant currency to $7.2 billion. Software revenues declined by 1% to $5.7 billion.
In a statement released with the earnings report, Oracle CEO Safra Catz told investors, “We signed four multi-billion-dollar contracts with three different customers in Q1. This resulted in RPO contract backlog increasing 359% to $455 billion. It was an astonishing quarter—and demand for Oracle Cloud Infrastructure continues to build.”
Moving forward, Katz said, “Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars. The scale of our recent RPO growth enables us to make a large upward revision to the Cloud Infrastructure portion of Oracle’s overall financial plan which we will be presenting in detail next month at the Financial Analyst Meeting.”
“We expect Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year—and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years. Most of the revenue in this 5-year forecast is already booked in our reported RPO. Oracle is off to a brilliant start to FY26.”
Oracle Chairman and CTO, Larry Ellison stated, “We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three Hyperscaler partners, for a total of 71. And next month at Oracle AI World, we will introduce a new Cloud Infrastructure service called the ‘Oracle AI Database’ that enables our customers to use the Large Language Model of their choice—including Google’s Gemini, OpenAI’s ChatGPT, xAI’s Grok, etc.—directly on top of the Oracle Database to easily access and analyze all their existing database data.”
Before Oracle announced its Q1 earnings, its shares had increased by 46% for the year.
By CEO NA Editorial Staff
