1. Oracle's Q1 revenue for fiscal year 2026 reached $14.93 billion, with earnings per share of $1.47, both slightly below market expectations; however, cloud infrastructure revenue surged by 55% year-on-year, and it is projected to expand from $10.3 billion to $144 billion over the next five years. 2. The company disclosed unfulfilled obligations amounting to $455 billion, a staggering increase of 359% year-on-year.
In the early morning of Wednesday Beijing time, the established technology giant, spurred by the resurgence of AI data centers, released its first-quarter financial report for the fiscal year 2026 ending in August. $Oracle (ORCL.US)$ Although the financial data was mediocre, the explosive growth in cloud business data quickly triggered a market frenzy.
Data shows that the company's adjusted earnings per share for the quarter were $1.47, slightly below analysts' expectations of $1.48; revenue was $14.93 billion, also lower than the anticipated $15.04 billion.
What excited the market was Oracle's announcement that unrecognized revenue (contracted income yet to be confirmed) had reached $455 billion, a year-on-year increase of 359%. Last quarter, the company signed a contract with OpenAI to jointly develop a data center in the U.S. with a capacity of 4.5 gigawatts.
Oracle's CEO, Safra Catz, also stated in the financial report that during the quarter, the company signed four contracts worth "several billion dollars" with three different clients.
The financial report revealed that Oracle's cloud infrastructure revenue reached $3.3 billion in the last quarter, reflecting a year-on-year growth of 55%. The year-on-year growth rate for the fourth quarter of the previous fiscal year was 52%.
The company also anticipates that cloud infrastructure revenue for fiscal year 2026 will reach $18 billion, nearly a 77% increase from $10.3 billion in fiscal year 2025. For the subsequent four fiscal years, the company expects this revenue to reach $32 billion, $73 billion, $114 billion, and $144 billion, respectively—meaning that if targets are met this fiscal year, it will need to increase eightfold over the next four years.
As of the time of writing, Oracle has surged over 28% in after-hours trading due to the impact of the earnings report. If the company can maintain this increase by the close of trading on Wednesday, its market capitalization will surpass JPMorgan, becoming the tenth largest publicly traded company in the United States, and will rank twelfth globally among publicly traded companies by market capitalization. Should the increase reach 22% or higher on Wednesday, it will mark Oracle's best performance since the dot-com bubble of 1999, and also become the third largest single-day gain in history.
Buoyed by Oracle's earnings report, AI chip-related concept stocks collectively rose during the night trading session.$NVIDIA (NVDA.US)$ 、 $Broadcom (AVGO.US)$ 、$Advanced Micro Devices (AMD.US)$Increased by approximately 2%, $CoreWeave (CRWV.US)$ increased by over 5%.
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