Oracle Shares Surge on Unprecedented $455 Billion Contract Backlog

A staggering $455 billion in committed future business sent Oracle Corporation’s stock soaring, with shares rocketing approximately 27% in extended trading. The software behemoth demonstrated its rapidly expanding influence in the competitive cloud computing sector, overshadowing a quarterly performance that narrowly missed certain analyst forecasts.

While Oracle’s earnings per share of $1.47 came in slightly below the anticipated $1.48, the monumental scale of its contracted future revenue captivated the market. The company’s Remaining Performance Obligations (RPO), a key metric of booked but unrecognized revenue, skyrocketed by an astonishing 359% year-over-year. CEO Safra Catz attributed this surge to “four multi-billion-dollar contracts secured with three distinct customers.”

This colossal backlog provides Oracle with exceptional financial predictability. A significant portion of the revenue outlined... Read more...