Oracle’s first-quarter Cloud revenue jumped 28% to $7.19 billion, with the Cloud infrastructure revenue soaring 55% to $3.3 billion.
Oracle shares jumped nearly 30% in Tuesday’s extended session after the database giant issued an upbeat forward-looking outlook, citing strength in the cloud business. Investors largely ignored the company’s underwhelming quarterly results.
On Stocktwits, retail sentiment toward the stock remained ‘extremely bullish’ (97/100) as of late Tuesday, and the message volume spiked to ‘extremely high levels.’
The Austin, Texas-based company’s key numbers for the first quarter of the fiscal year 2026 are as follows:
The management clarified on the earnings call that the earnings miss was due to the higher-than-anticipated tax rate, which dented earnings by $0.03 per share, according to a transcript made available by Koyfin.
Oracle’s cloud revenue jumped 28% to $7.19 billion, with cloud infrastructure revenue soaring 55% to $3.3 billion and Cloud application revenue up a more modest 11%. Cloud infrastructure refers to the provision of cloud-based databases for artificial intelligence (AI) applications. On the other hand, software revenue fell 1% to $5.72 billion.
Remaining Performance Obligations (RPO), a key metric of future revenue potential, jumped 359% to $455 billion. Oracle CEO Safra Catz said the company signed four multi-billion-dollar contracts with three customers in the first quarter, pushing up the RPO contract backlog.
“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 executive said. She also hinted at Cloud infrastructure revenue growing 77% to $18 billion in the current fiscal year, before jumping to $32 billion, $73 billion, $114 billion and $144 billion over the subsequent four years.
Catz said, “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.”
The executive stated that the company will share more details at its Financial Analyst Meeting, scheduled for October.
Oracle Chairman Larry Ellison noted that MultiCloud database revenue from Amazon, Google and Microsoft grew at the incredible rate of 1,529% in the quarter. “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,” he added.
Ellison said the company plans to introduce a new Cloud infrastructure service, called “Oracle AI Database,” which allows customers to use large language models (LLMs) of their choice directly on its database.
On the earnings call, Catz guided second-quarter revenue growth to 14%-16%, aligning with the 15% consensus growth forecast, and Cloud revenue growth to 33%-37%. The company expects adjusted EPS for the quarter to be $1.61-$1.65, while Wall Street estimated $1.62 for the quarter. It sees a favorable currency impact, boosting bottom-line results by 1%.
The company’s board declared a quarterly cash dividend of $0.50 to be paid on Oct. 23 to shareholders of record as of the close of business on Oct. 9.
Oracle’s stock has gained 46% year-to-date by Tuesday’s session.
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