Full Breakdown
Oracle’s $638 Billion Backlog Fuels AI Cloud Optimism Amid Market Rally
9/8/2026, 11:49:49 PM
Core Event: Record RPO and Cloud Revenue Highlight Oracle’s FY 2026 Results
Oracle released its fiscal 2026 earnings for the year ended May 31 on June 10. Revenue rose 17 % to a record $67.4 billion, driven by a 77 % jump in cloud-infrastructure revenue to $18.1 billion. The Remaining Performance Obligation (RPO) climbed to $638 billion, up $500 billion YoY. In Q4, cloud-infrastructure revenue hit $5.79 billion, a 93 % YoY increase.
Background & Context
Oracle’s share price fell 32 % over the past year while the Nasdaq Composite gained 22 %. Rising debt and negative free-cash-flow have prompted accelerated AI-focused data-center investments. A Morgan Stanley upgrade lifted the stock 5 % to $167.15 in early trading on the report day.
Data & Statistics
| Metric | Figure | Period |
|---|---|---|
| Total revenue | $67.4 billion | FY 2026 |
| Cloud-infrastructure revenue | $18.1 billion | FY 2026 |
| Q4 cloud-infrastructure revenue | $5.79 billion | FY 2026 Q4 |
| Remaining Performance Obligation (RPO) | $638 billion | FY 2026 Q4 |
| RPO growth YoY | +$500 billion | FY 2026 |
| FY 2027 revenue guidance | $90 billion | FY 2027 |
| FY 2027 non-GAAP EPS guidance | $8.05 | FY 2027 |
| FY 2029 EPS projection | $15.69 | FY 2029 |
Official Statements & Responses
- Morgan Stanley raised its price target, citing the “AI infrastructure spending case.”
- Oracle’s management reaffirmed a $90 billion FY 2027 revenue target and lifted non-GAAP EPS guidance to $8.05.
- The company expects 12 % of the RPO to be recognized within 12 months and an additional 34 % over the next 24 months, projecting roughly $77 billion of revenue from RPO in FY 2027.
Verbatim Quotes
- “Demand continues to intensify as the market broadens across sectors, geographies, workloads and generations of GPU architecture.” — Michael Intrator, CEO, CoreWeave
- “AI is bringing new workloads onto the platform.” — Sridhar Ramaswamy, CEO, Snowflake
What’s Next: Upcoming Catalysts
Oracle confirmed its Q1 FY 2027 earnings release is scheduled for later this quarter. Analysts will watch revenue and RPO conversion rates, as well as the planned $40 billion capital raise and AI-focused data-center rollout.
Conflicting Reports & Gaps
No direct contradictions appear among the sources. The long-term impact of Oracle’s debt load and negative free-cash-flow on its aggressive capex plan remains unaddressed.
