Oracle Corp (NYSE:ORCL) stock rallies 42.57% (As on September 10, 11:23:29 AM UTC-4, Source: Google Finance) after the company forecast booked revenue from its core cloud business to exceed half a trillion dollars over the next few months, boosted by growing demand for its relatively low-cost cloud infrastructure services. The company’s remaining performance obligations, or RPO, the most popular measure of booked revenue, jumped 359% to $455 billion in the first quarter, ended August 31. Over the next few months, the company expects to sign-up several additional multi-billion-dollar customers and RPO is anticipated to exceed half-a-trillion dollars. Enterprises are clearly eager for cost-effective AI cloud tools, and Oracle is positioning itself to capture that demand. Oracle offers integrated cloud technologies along with flexible deployment models, enabling it to meet a range of customer demands. It has struck deals with Amazon, opens new tab, Alphabet, opens new tab and Microsoft, opens new tab for OCI to run inside their respective cloud infrastructure. Revenue from these clients grew 1,529% in the first quarter. The company expects MultiCloud revenue to grow substantially every quarter for several years as it deliver another 37 datacenters to the three hyperscaler partners, for a total of 71. Non-GAAP net income was $4.3 billion, up 8% in USD and up 6% in constant currency.
ORCL in the first quarter of FY 26 has reported the adjusted earnings per share of $, beating the analysts’ estimates for the adjusted earnings per share of $, according to . The company had reported the adjusted revenue growth of 12 percent to $14.93 billion in the first quarter of FY 26, beating the analysts’ estimates for revenue of $ billion. Short-term deferred revenues were $12.1 billion. Over the last twelve months, operating cash flow was $21.5 billion, up 13% in USD.
Additionally, the company declared a quarterly cash dividend of $0.50 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on October 9, 2025, with a payment date of October 23, 2025.
Oracle forecast OCI revenue growth of 77% to $18 billion this fiscal year, and another 8x in the next five years to reach $144 billion by the fiscal year which will end in May 2030. For the second quarter, Oracle expects total revenue to grow 12% to 14%, while it sees cloud revenue growth between 32% to 36%. The analysts expecting Oracle’s free cash flow to remain negative for the second year running, due to the high costs in building these data centres. Capex this year is projected to be $35 billion, well above the $26 billion estimates.