Oracle Corporation announced its first fiscal quarter earnings after the market closed on Tuesday local time. The report showed that although revenue and earnings per share fell short of expectations, the AI business demonstrated extremely strong growth prospects. A massive deal signed with OpenAI significantly boosted order volume, and the company provided aggressive growth expectations for its cloud infrastructure business. Oracle's stock surged over 28% after hours.

Specifically, Oracle's adjusted revenue for the first fiscal quarter was $14.93 billion, compared to analysts' expectations of $15.03 billion. Operating profit for the first fiscal quarter was $6.24 billion, versus analysts' expectations of $6.21 billion. The operating profit margin for the first fiscal quarter reached 42%, compared to analysts' expectations of 41.2%. In terms of net profit, Oracle's GAAP net profit for the first fiscal quarter was $2.9 billion, while non-GAAP net profit was $4.3 billion, an 8% year-over-year increase.

What caught market attention was Oracle's announcement that its remaining performance obligations (unrecognized contracted revenue) had reached $455 billion, a staggering 359% year-over-year increase. Last quarter, the company signed a deal with OpenAI to jointly develop a data center in the United States with a capacity of 4.5 gigawatts.

"In the first quarter, we signed four billion-dollar contracts with three different customers," Oracle CEO Safra Catz wrote in the earnings report. "This increased our RPO (remaining performance obligations) contract backlog by 359% to $455 billion. It was an astonishing quarter—demand for Oracle Cloud Infrastructure continues to grow. In the coming months, we expect to sign several more new billion-dollar customers."

Safra Catz projected that Oracle's cloud infrastructure revenue would reach $18 billion in fiscal year 2026, a nearly 77% increase from $10.3 billion in fiscal year 2025. For the following four fiscal years, the company expects this revenue to reach $32 billion, $73 billion, $114 billion, and $144 billion, respectively—meaning that, if the current fiscal year target is met, revenue will increase eightfold over the next four years.

"Multi-cloud database revenue from Amazon, Google, and Microsoft grew at an astonishing 1,529% in the first quarter," said Oracle Chairman and Chief Technology Officer Larry Ellison. "As we deliver an additional 37 data centers to these three hyperscale partners, bringing the total to 71, we expect multi-cloud revenue to grow significantly every quarter in the coming years."