TLDR
- Oracle Skyrockets 22% After Q1 Cloud Surge and Massive RPO Spike
- Cloud Contracts Power Oracle Stock to Soar in After-Hours Trading
- Oracle Hits $294 After Posting 359% RPO Growth and Cloud Gains
- AI and Cloud Deals Fuel Oracle’s Explosive Q1 and Stock Rally
- Oracle Unveils Massive Cloud Momentum, Stock Pops 22% on Results
Oracle Corporation closed regular trading at $241.63, marking a 1.32% gain. However, the stock surged another 21.96% in after-hours trading to $294.70.
Oracle Corporation (NYSE: ORCL)
This sharp movement followed the release of strong Q1 fiscal 2026 results, driven by explosive growth in performance obligations and cloud revenue.
The company reported $455 billion in Remaining Performance Obligations (RPO), representing a 359% year-over-year jump. This growth followed the signing of four multi-billion-dollar cloud contracts in the quarter. Oracle confirmed these deals came from three different customers.
Oracle $ORCL said that it signed four multi-billion dollar contracts with three customers in Q1, driving RPO up 359% YoY to $455 billion. pic.twitter.com/Wjcll3EbQC
— Beth Kindig (@Beth_Kindig) September 9, 2025
With this performance, Oracle’s cloud infrastructure segment saw strong momentum. The company plans to revise its financial targets upward for this division. At its upcoming financial analyst meeting, Oracle will reveal new long-term cloud growth forecasts.
Cloud revenue climbs as SaaS and IaaS drive topline growth
Oracle’s total quarterly revenue reached $14.9 billion, growing 12% in USD and 11% in constant currency. Cloud revenue accounted for $7.2 billion of that total, up 28% in USD and 27% in constant currency. This includes both Infrastructure as a Service (IaaS) and Software as a Service (SaaS).
The IaaS segment generated $3.3 billion, rising 55% year-over-year in USD terms. SaaS revenue came in at $3.8 billion, increasing 11% over the same period. Fusion Cloud ERP and NetSuite Cloud ERP each contributed $1 billion, growing 17% and 16%, respectively.
In contrast, software revenues declined 1% to $5.7 billion in USD, reflecting a shift toward cloud-based offerings. Oracle also reported $12.1 billion in short-term deferred revenues. Operating cash flow reached $21.5 billion over the past year, up 13%.
AI integration and multicloud partnerships fuel future outlook
Oracle’s multicloud database revenue surged 1,529% in Q1, driven by partnerships with Amazon, Microsoft, and Google. The company will add 37 more datacenters to support these hyperscaler alliances. This expansion will bring the total to 71 datacenters across partners.
Oracle plans to launch a new product called the Oracle AI Database at its AI World event next month. This cloud service will allow clients to apply leading large language models to their Oracle Database content. By enabling AI-based data analysis, the product aims to drive demand and cloud consumption.
The board also declared a quarterly dividend of $0.50 per share, payable October 23 to shareholders of record as of October 9. Oracle sees AI and multicloud as long-term growth engines. Management remains confident that RPO will soon exceed half a trillion dollars.
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