Oracle(US:ORCL) ZACKSยท2025-09-10 20:01Core Insights - Oracle Corporation's shares surged 31.8% in after-hours trading, reaching record highs due to optimism from significant contract signings and future growth potential [1][2][7] Financial Performance - For the fiscal first quarter of 2026, Oracle reported total revenues of $14.9 billion, an 11% year-over-year increase, although it fell short of Wall Street expectations [5] - Net income remained flat at $2.93 billion, or $1.01 per share, compared to $2.93 billion, or $1.03 per share, in the same quarter the previous year [5] Growth Drivers - The increase in Oracle's share price was primarily driven by a 359% year-over-year rise in remaining performance obligation (RPO) to $455 billion, attributed to four multi-billion-dollar contracts signed in the reported quarter [6][7] - Oracle's cloud infrastructure business is projected to grow significantly, with revenues expected to rise from $18 billion in FY26 to $144 billion by 2030 [9] Strategic Partnerships - Oracle's partnership with OpenAI to build 4.5 gigawatts of data center capacity is a key factor contributing to the increase in RPO [8] - The company is well-positioned to secure additional multi-billion-dollar contracts, potentially pushing RPO beyond $500 billion in the coming months [8][10] Market Position - Year-to-date, Oracle's shares have increased by 77.7%, significantly outperforming the Computer-Software industry, which gained 15.3%, and the broader S&P 500 index [3][4]