Oracle(US:ORCL) Yahoo Financeยท2025-09-10 14:55Core Insights - Oracle's shares surged by as much as 41.3% following robust quarterly results and an impressive forecast [1] - The company reported fiscal 2026 Q1 revenue of $14.9 billion, a 12% year-over-year increase, with adjusted EPS of $1.47, up 6% [3] - Strong demand for cloud infrastructure services, particularly for AI adoption, drove revenue growth, with cloud services revenue increasing by 55% to $3.3 billion [3] Financial Performance - Oracle's revenue growth of 12% year-over-year was accompanied by adjusted EPS growth of 6%, both metrics showing acceleration compared to Q4 [3] - The company's remaining performance obligation (RPO) surged 359% to a record $455 billion, driven by four multibillion-dollar contracts signed during the quarter [4] - Analysts had estimated total revenue of $15 billion and adjusted EPS of $1.48, indicating that Oracle fell short of Wall Street expectations [4] Future Outlook - Oracle's five-year financial plan indicates significant growth in cloud infrastructure services, with expectations of 77% growth in fiscal 2026 [5] - Projected cloud revenue for fiscal 2027 is $32 billion (up 78%), fiscal 2028 is $73 billion (up 128%), and fiscal 2029 is $144 billion (up 97%) [6] - The growth rate suggests Oracle is gaining market share, outpacing its major competitors [7] Strategic Focus - Oracle's focus on AI and cloud services is yielding positive results, with management indicating continued demand and expectations for additional multi-billion-dollar contracts [8] - Following the strong performance, Oracle's stock is trading at 42 times next year's earnings, reflecting a significant premium due to the optimistic forecast [8]