Software Giant Raises Outlook While Demand for AI Infrastructure Fuels Record Backlog
Oracle Corporation (ORCL) reported stronger-than-expected fourth-quarter fiscal 2026 results, highlighting the company’s growing role in the artificial intelligence infrastructure market. Revenue rose 21% year-over-year to $19.18 billion, surpassing analyst expectations, while adjusted earnings per share climbed 24% to $2.11, also beating forecasts.
The company’s cloud business continued to be the primary growth driver, with total cloud revenue surging 47% to $9.9 billion. Notably, Oracle Cloud Infrastructure revenue nearly doubled, jumping 93% to $5.8 billion as enterprises increasingly invest in AI training and inferencing capabilities.
One of the most significant highlights was Oracle’s remaining performance obligations (RPO), which soared 363% year-over-year to $638 billion. Management attributed the massive backlog increase to accelerating demand for AI-related cloud services, underscoring Oracle’s growing competitiveness against larger cloud rivals.
Looking ahead, Oracle issued an optimistic outlook. The company expects first-quarter revenue growth between 27% and 29%, with cloud revenue projected to increase as much as 63%. Oracle also reaffirmed its fiscal 2027 revenue target of $90 billion, above Wall Street expectations.
Despite the strong results, shares faced selling pressure following the announcement as investors evaluated Oracle’s plan to raise approximately $40 billion through a mix of debt and equity financing. Nevertheless, the company’s robust cloud growth, expanding AI opportunities, and improving profitability continue to position Oracle as a major beneficiary of the ongoing artificial intelligence investment boom.
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