TLDR
- Oracle’s remaining performance obligations hit $553 billion, up 325% year over year, driven by cloud and AI infrastructure demand
- Salesforce reported $41.5 billion in full-year revenue, up 10%, with a $72 billion remaining performance obligation backlog
- Oracle is being repositioned as an AI infrastructure and cloud player, not just a legacy database company
- Salesforce raised its dividend and authorized a $25 billion buyback, leaning into its identity as a mature software compounder
- Wall Street rates both stocks Moderate Buy, with Oracle’s average price target at $260.71 and Salesforce’s at $279.18
Oracle and Salesforce are two of the biggest names in enterprise software. Both are drawing investor attention right now, but for very different reasons.
Oracle recently posted fiscal Q3 2026 revenue of $17.0 billion, up 6% year over year. GAAP net income came in at $3.73 billion.
The number that stood out most was Oracle’s remaining performance obligations, which hit $553 billion, up 325% year over year. That figure reflects the scale of customer commitments already locked in for future cloud services.
Oracle is no longer seen purely as a legacy database company. It is increasingly viewed as a cloud infrastructure business with direct exposure to AI workloads, including model training and data-heavy computing.
The company has a large installed base and sticky database relationships built over decades. Those existing customers are now being funneled into Oracle’s cloud infrastructure products.
The core question for investors is whether Oracle can convert that massive backlog into durable revenue growth over time. That is the debate the market is actively working through right now.
Salesforce: Margins and Recurring Revenue
Salesforce reported $41.5 billion in full-year fiscal 2026 revenue, up 10% year over year. In Q4 alone, it posted $11.2 billion in revenue, up 12.1%, beating analyst expectations.
Its remaining performance obligation reached $72 billion, up 14%. That number reflects a healthy pipeline of committed subscription revenue.
Salesforce has shifted its story toward profitability and operating discipline. It is no longer pitching itself as a hyper-growth company.
Management is positioning the platform as the core operating layer for what it calls the “agentic enterprise.” AI agents and automation tools are being added directly into its customer relationship software.
Salesforce also raised its dividend and approved a $25 billion share buyback. That move signals a more mature company focused on returning cash to shareholders.
The business model is straightforward. Investors are buying recurring subscriptions, customer lock-in, and expanding margins, with AI acting as an add-on to the existing platform.
Final Thoughts
Oracle carries more execution risk but also more upside if its cloud infrastructure push plays out. Salesforce is the steadier option, with cleaner software margins and stronger capital returns already in place.
Wall Street rates Oracle a Moderate Buy with an average price target of $260.71, based on 3 Strong Buys, 27 Buys, 9 Holds, and 1 Sell. Salesforce also holds a Moderate Buy consensus across 39 analysts, with an average price target of $279.18.
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