Oracle: Why the share price is shooting up after the Q1 figures
Oracle released its Q1 figures on Tuesday evening after the US stock market closed. Although the US software company slightly missed market expectations for revenue and profit, its shares nevertheless rose by about a fifth in after-hours trading. The reason for this was the company's tremendous growth in a key metric for software companies.
A first glance at Oracle's figures is sobering: Although revenue climbed by around twelve percent, at $14.9 billion it was slightly below the market's $15 billion forecast. Oracle's earnings per share of $1.47 also fell slightly short of analysts' average estimates of $1.48. However, there was a huge surprise in remaining performance obligations (RPO). This figure, which climbed 359 percent to $455 billion, describes deferred revenue plus the backlog. RPO thus indicates which future performance obligations have not yet been billed to customers.
Strong growth years aheadAccording to the Q1 report, Oracle expects cloud infrastructure revenue to reach approximately $18 billion in fiscal year 2026, representing a 75 percent increase from $10.3 billion in fiscal year 2025. The company also forecasts revenue of $32 billion, $73 billion, $114 billion, and $144 billion for fiscal years 2027, 2028, 2029, and 2030, respectively.
AI boom continuesThese bold predictions are made possible by the ongoing AI hype, which is giving Oracle a massive boost. Alongside major cloud providers like Microsoft, the company is one of the winners of the AI boom, not least thanks to its cloud infrastructure and access to Nvidia GPUs, which are essential for compute-intensive AI workloads. CEO Safra Catz emphasized that Oracle signed four multi-billion dollar contracts with three different customers in the past quarter. One highlight: OpenAI entered into a cooperation with Oracle to develop 4.5 gigawatts of data center capacity in the USA. Additionally, Oracle announced that the Gemini AI models from cloud competitor Google will now be available on Oracle's cloud infrastructure. These strategic partnerships with industry giants like Google and OpenAI underscore Oracle's central role in the AI ecosystem.
Oracle shares reached a record high just last month and had already gained 45 percent by Tuesday's close – a clear outperformer compared to the S&P 500, which gained only 11 percent over the same period. With the after-hours price increase of 22 percent to $295.78 (not yet visible in the chart), the stock set a new record high. If confirmed in regular trading on Wednesday, Oracle would record the highest single-day price increase since the dot-com boom of 1999.
DER AKTIONÄR already recommended buying Oracle stock in issue 26/25. Investors are letting their profits run: Since the recommendation, the stock has posted a significant double-digit increase.
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