Oracle Missed Q1 Top and Bottom Lines -- Here's Why the Stock Jumping

Sep 10 - Oracle ORCL jumps about 30% on early Wednesday after a huge rise in remaining performance obligations (RPO) steals the spotlight from a slight Q1 miss.

For the quarter ending Aug. 31, Oracle posts adjusted EPS of $1.47 on $14.93 billion in revenue. Cloud revenue climbs 27% to $7.19 billion, while software slips 2% to $5.72 billion; hardware and services rise modestly to $670 million and $1.35 billion. Fusion Cloud ERP and NetSuite each bring in roughly $1 billion, up mid-teens year over year.

What grabs investors most: total RPO surges 359% to $455 billion after Oracle signs four multi-billion contracts. CEO Safra Catz says the backlog gives the company room to raise its cloud targets, forecasting big growth for Oracle Cloud Infrastructure this fiscal year and beyond.

Chairman Larry Ellison points to a sharp jump in multi-cloud database revenue with Amazon AMZN, Google GOOGL and Microsoft MSFT, and previews an Oracle AI Database service at Oracle AI World to let customers run the LLM of their choice on top of Oracle data.

The firm positions cloud and AI as its near-term growth drivers while investors weigh near-term results against a loaded contract pipeline.