Oracle Stocks Surges nearly 40%
Oracle Corp.’s latest earnings report has triggered a historic day for the company and its stock, fueled by unprecedented demand for its cloud services, particularly from the artificial intelligence sector. While the reported earnings per share of $1.47 slightly missed some analyst estimates, and total revenue of $14.9 billion was a modest 12% increase year-over-year, these figures were completely overshadowed by the company’s bold future projections and massive contract backlog. The company announced its remaining performance obligations (RPO)—a measure of future contracted revenue—skyrocketed by 359% to $455 billion, with executives stating they expect it to exceed half a trillion dollars soon. This massive backlog, which reportedly includes a significant five-year, multi-billion-dollar deal with OpenAI, has instilled extreme confidence in investors about Oracle’s long-term growth.