Oracle's Cloud Surges: Q4 Revenue Up 21%, RPO Hits $638B on AI Deals, Strong Q1 Guidance
Summary
Oracle announced record Q4 and FY26 results, with Q4 total revenues up 21% to $19.2 billion and cloud revenues up 47% to $9.9 billion, driven by 93% IaaS growth. Non-GAAP EPS rose 24% to $2.11. Remaining Performance Obligations (RPO) surged $85 billion sequentially to $638 billion, largely due to large-scale AI contracts where customers prepaid or supplied GPUs, reducing Oracle's capital requirements for its massive AI data center build-out. This follows recent news of a $300 billion cloud deal with OpenAI and significant capital expenditure plans. The strong results, particularly in cloud infrastructure and RPO, validate Oracle's aggressive AI investment strategy and demonstrate significant customer commitment, providing strong revenue visibility. The company also provided robust Q1 FY27 guidance, projecting total revenue growth of 27-29% and cloud revenue growth of 58-64%.
At the time of this announcement, ORCL was trading at $187.02 on NYSE in the Technology sector, with a market capitalization of approximately $578.8B. The 52-week trading range was $134.57 to $345.72. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: PR Newswire.