Oracle(US:ORCL) Sou Hu Cai Jing·2025-09-10 15:45Core Viewpoint - Oracle's financial performance and strategic partnerships position it favorably in the growing AI and cloud computing markets, leading to a significant increase in its remaining performance obligations (RPO) and overall market valuation [3][4][5]. Financial Performance - For the first fiscal quarter of 2026, Oracle reported revenue of $14.93 billion, a year-over-year increase of 12%, but below market expectations of $15.03 billion [3]. - Non-GAAP net profit was $4.3 billion, up 8% year-over-year, with adjusted earnings per share at $1.47, slightly below the expected $1.48 [3]. - Cloud computing revenue grew 28% year-over-year to $7.186 billion, accounting for 48% of total revenue [3]. Remaining Performance Obligations (RPO) - Oracle's RPO reached $45.5 billion, a year-over-year increase of over four times and a sequential increase of over three times from $13.8 billion in the previous quarter [3][4]. - CEO Safra Catz indicated that RPO is expected to exceed $50 billion in the coming months due to significant contracts signed with major clients [4]. Strategic Partnerships and Market Position - Oracle has signed substantial contracts with AI companies such as OpenAI, xAI, and Meta, enhancing its cloud infrastructure offerings [4]. - The company has agreements with Amazon, Alphabet, and Microsoft to run its cloud services on their infrastructures, indicating strong market positioning [4]. Growth Projections - Oracle anticipates cloud infrastructure revenue to grow 77% year-over-year to $18 billion in the current fiscal year, with expectations of reaching over $100 billion in the next four years [4]. - The company raised its capital expenditure guidance from $25 billion to approximately $35 billion due to high demand [4]. AI Market Strategy - Oracle introduced a new "AI database" aimed at dominating the AI inference market, ensuring user privacy while providing access to advanced AI models [5]. - The company's stock price rose by 1.27% to $241.51, with a market capitalization of $678.36 billion, and it is projected to exceed $800 billion if the upward trend continues [5].