Oracle Corporation has announced financial results for the first quarter that beat analyst expectations, with adjusted earnings of $1.47 per share. That was still a penny short of what analysts had expected from the company’s earnings – $1.48 per share. Their collective performance bumped the whole sector’s optics, creating a frenzy amongst investors. Oracle’s stock is on course for its best day since 1992. Value of the future… It has created a staggering 40% increase in value!
The company brought in $14.93 billion of total revenue for the quarter, missing the consensus of $15.04 billion. Yet it’s Oracle’s public cloud infrastructure revenue predictions that have captured the market’s imagination. The company expects to reach a staggering $18 billion in cloud infrastructure sales by fiscal year 2026. They intend to increase this amount to $32 billion, and then to $73 billion, $114 billion and eventually $144 billion over the next four years.
Oracle’s RPO have soared to an astounding $455 billion. This is an amazing 359% increase over last year! This number is well above The Street’s anticipation of around $180 billion in RPO.
Ben Reitzes, an analyst at Barclays, compared the strangeness of Oracle’s latest financial report to “a triple rainbow.”
“This is a very historic kind of print right here from Oracle with this backlog.” – Ben Reitzes
He further emphasized the notable disparity between expectations and reality regarding RPO figures, stating:
“The Street was looking for about $180 billion in RPO and they’re talking about a number that is a multiple of that. That is astounding.” – Ben Reitzes
Oracle’s market cap has recently started approaching the $1 trillion threshold. Taken together, this TA and advocacy work cements the company’s position as the preeminent force in the tech industry. The company’s monumental push to expand its cloud offerings was at the heart of that growth strategy. Analysts and investors on both sides are watching closely to see how these projections will impact Oracle’s future growth trajectory.
In addition to Oracle’s financial disclosures, notable happenings within the tech landscape include Unitree’s planned $7 billion IPO valuation and AI firm Mistral’s valuation at $14 billion following ASML’s acquisition of a major stake in the company. Nvidia’s omnipresent CEO Jensen Huang will accompany former President Donald Trump on an official state visit to the UK next week. At the same time, Meta is facing increased scrutiny after an employee recently filed a whistleblower suit that claims there are serious security flaws at WhatsApp.