Oracle(US:ORCL) Xin Lang Cai Jing·2025-09-11 10:41Core Viewpoint - Oracle's backlog orders significantly exceeded expectations, with a sequential increase of $316 billion compared to the anticipated $100 billion, indicating a fundamental shift in the company's business model towards data center operations [2][3] Group 1: Financial Performance - Oracle recorded a record high of $332 billion in new bookings for the first quarter, marking the largest booking figure in the software industry’s history [2][3] - Despite the strong bookings, the actual financial performance was underwhelming, with revenue falling short of expectations and Oracle Cloud Infrastructure (OCI) revenue remaining weak [3][10] - The company’s overall revenue is projected to grow at a compound annual growth rate (CAGR) of 31% to reach $169 billion by the fiscal year 2029, with OCI revenue expected to contribute significantly [4][10] Group 2: Revenue and Growth Projections - OCI revenue targets have been raised to $18 billion for FY26, $32 billion for FY27, $73 billion for FY28, $114 billion for FY29, and $144 billion for FY30, with most of this revenue already contracted [4][7] - The company’s cloud database revenue achieved approximately $2.8 billion in annual recurring revenue (ARR), reflecting a 32% year-over-year growth [6][8] - The growth in traditional infrastructure services has outpaced major competitors like AWS and Azure, with a growth rate exceeding 35% [6] Group 3: Capital Expenditure and RPO - Capital expenditure guidance for FY26 has been significantly raised to $35 billion, an increase of $10 billion from previous estimates, indicating a focus on revenue-generating equipment in leased data centers [9] - The remaining performance obligations (RPO) surged to $455 billion, with a sequential increase of $317 billion, suggesting strong future revenue potential [6][9] Group 4: Market Position and Strategy - Oracle is transitioning its core business towards GPU data center operations, positioning itself as a leader in this market with substantial new contracts [3][6] - The company signed four multi-billion dollar contracts in the quarter, with management indicating that these contracts could have terms lasting up to 10 years [3][4]