Oracle Shares Climb as Bookings Jump 359%, Sees RPO Reaching Half a Trillion Dollars

$Oracle (ORCL.US)$ shares climbed in early trading Wednesday after the company disclosed a 359% surge in bookings and forecast that its remaining performance obligations (RPO) could climb above half a trillion dollars.

The company's remaining performance obligations, a measure of bookings, surged to $455 billion in the first quarter, according to its financial results released after the market closed Tuesday. That overshadowed the fiscal first quarter revenue and earnings that slightly missed analysts' estimates.

"We signed four multi-billion-dollar contracts with three different customers in Q1," Oracle CEO Safra Catz said in the company's earnings release. "Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars."

Adjusted earnings rose 6% to $1.47 a share in the first quarter, missing the $1.48 adjusted EPS expected by analysts, according to estimates compiled by Bloomberg. Total revenue rose 11% in constant currency to $14.9 billion, below the $15.03 billion expected by analysts.

"The scale of our recent RPO growth enables us to make a large upward revision to the Cloud Infrastructure portion of Oracle's overall financial plan which we will be presenting in detail next month at the Financial Analyst Meeting," the CEO said. "As a bit of a preview, we expect Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year—and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years.

The CEO added that most of the company's revenue in this 5-year forecast is already booked in its reported RPO. "Oracle is off to a brilliant start to FY26," Catz said.

Source: Oracle's Q1 results

Oracle Chairman Larry Ellison said the company's multicloud database revenue from $Amazon (AMZN.US)$, $Alphabet-A (GOOGL.US)$'s Google and $Microsoft (MSFT.US)$ soared 1,529% in the first quarter that ended Aug. 31.

"We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three Hyperscaler partners, for a total of 71," Ellison said in the press release. He said the company will introduce a new Cloud Infrastructure service called the 'Oracle AI Database' that enables its customers to use the Large Language Model of their choice—including Google's Gemini, OpenAI's ChatGPT, xAI's Grok, etc.— directly on top of the Oracle Database to easily access and analyze all their existing database data.

Before the results were released, Oracle's options market was pricing in a potential 8.78% move up or down in the share price.

(To see Oracle's options chain, click here. For the U.S. options market page, click here.)

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