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Oracle Corporation released its fiscal Q1 2026 earnings after market close on September 9, 2025, showcasing robust growth across its cloud infrastructure and AI-driven services. The results exceeded Wall Street expectations and reinforced Oracle’s position as a key player in enterprise technology and artificial intelligence infrastructure.
Financial Highlights
Oracle reported total revenue of $14.9 billion, marking a 12% increase year-over-year. Non-GAAP earnings per share came in at $1.47, up 6% from the same quarter last year. GAAP earnings per share were $1.01, reflecting a slight decline due to one-time expenses and restructuring costs.
The company’s cloud revenue—which includes both Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS)—rose to $7.2 billion, a 28% increase year-over-year. This growth was led by Oracle Cloud Infrastructure (OCI), which alone generated $3.3 billion, up 55% from the prior year. SaaS applications, including Fusion and NetSuite ERP platforms, contributed $3.8 billion, up 11%.
Strategic Contracts and RPO Surge
One of the most striking figures in the report was Oracle’s Remaining Performance Obligations (RPO), which surged 359% to $455 billion. This massive backlog includes multi-year contracts signed with major enterprise clients, many of which are focused on AI training workloads and multi-cloud deployments.
CEO Safra Catz confirmed that Oracle signed four multi-billion-dollar contracts during the quarter, and expects several more in the coming months. These deals are expected to significantly boost OCI revenue, which the company now forecasts to grow 77% this fiscal year, reaching $18 billion.
Analyst Reactions and Market Impact
Top analysts responded positively to the report. Price targets were raised across the board, with firms citing Oracle’s strong fundamentals and expanding AI infrastructure. The company’s ability to scale GPU clusters and support generative AI workloads has positioned it as a preferred vendor for large-scale enterprise deployments.
Despite a slow August in deal activity, analysts expect momentum to pick up in Q4 and into early 2026. Oracle’s long-term revenue forecast has been revised upward, with projections reaching $144 billion in OCI revenue by fiscal 2030.
Challenges and Outlook
While the report was largely positive, Oracle did face some margin pressure due to increased capital expenditures and cloud infrastructure scaling. Gross margins dipped slightly, and analysts are watching closely to see how the company manages profitability as it expands.
Still, Oracle’s strong cash flow—$21.5 billion over the last twelve months—and its aggressive investment in cloud and AI technologies suggest a confident outlook. The company plans to present a revised financial roadmap at its upcoming Analyst Day, where it will detail its multi-year growth strategy.
Oracle’s Q1 earnings underscore its transformation from a legacy software provider into a cloud-first, AI-driven powerhouse. With record-breaking RPO, accelerating cloud revenue, and strategic enterprise partnerships, the company is well-positioned to capitalize on the next wave of digital infrastructure demand.
Investors and analysts alike are watching closely as Oracle continues to scale—and redefine—what enterprise technology looks like in the age of artificial intelligence.