Oracle’s cloud backlog jumped 359% to $455 billion after four massive contracts

Oracle’s stock shot up 27% today after the company reported a ridiculous 359% increase in cloud backlog, reaching $455 billion. That surge happened even though Oracle missed on earnings.

Investors didn’t flinch. They saw the size of the deals getting signed and went all in.

The company, based in Austin, Texas, said it signed four multi-billion-dollar contracts with three separate customers during its first quarter of fiscal 2026. That dealmaking spree is what blew up the backlog.

The company’s total quarterly revenue hit $14.9 billion, up 12% in USD and 11% in constant currency. Cloud revenue alone jumped 28% in USD, bringing in $7.2 billion. But not everything was glowing. Software sales dipped 1%, pulling in $5.7 billion.

Oracle’s net income slips, but cloud forecasts get wild

Oracle’s GAAP operating income for Q1 came in at $4.3 billion, while non-GAAP operating income hit $6.2 billion, a 9% year-over-year increase in USD. The company reported $2.9 billion in GAAP net income. On a non-GAAP basis, that number was $4.3 billion, up 8% compared to last year.

Not everything went up. GAAP earnings per share dropped to $1.01, a 2% fall in USD terms. Non-GAAP earnings per share rose to $1.47, a 6% bump from the previous year. Short-term deferred revenue now stands at $12.1 billion, and the company’s operating cash flow over the last 12 months reached $21.5 billion, up 13%.

CEO Safra Catz said:

“We signed four multi-billion-dollar contracts with three different customers in Q1. This resulted in RPO contract backlog increasing 359% to $455 billion. It was an astonishing quarter—and demand for Oracle Cloud Infrastructure continues to build.”

She added that even more multi-billion-dollar deals are expected in the coming months. If that happens, Oracle’s backlog could cross the $500 billion mark before year-end.

Catz said the company will rework its financial plan for Oracle Cloud Infrastructure to reflect this growth and will share the details next month during the Financial Analyst Meeting.

As a preview, Catz said Oracle Cloud Infrastructure revenue is expected to grow 77% this fiscal year to $18 billion. And then it just keeps climbing:

• $32 billion next year
• $73 billion the year after
• $114 billion the following year
• $144 billion by the fifth year

Catz said most of that revenue is already locked into the current RPO number.

Multicloud database explodes 1,529% and new AI database rolls out

Chairman and CTO Larry Ellison focused on Oracle’s MultiCloud efforts and what’s next for its AI strategy. He said revenue from Oracle databases sold through Amazon, Google, and Microsoft exploded 1,529% in Q1.

That came as Oracle delivered more datacenters to these companies, 37 more are planned, bringing the total to 71.

“We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three Hyperscaler partners,” said Ellison.

But that’s not all. Ellison also said a new product called the Oracle AI Database will debut next month at Oracle AI World. This cloud tool will let customers use any large language model (LLM) they want (including ChatGPT, Gemini, or Grok) on top of their existing Oracle databases.

“This revolutionary new cloud service enables the tens of thousands of our database customers to instantly unlock the value in their data by making it easily accessible to the most advanced AI reasoning models,” said Ellison.

The point is to make Oracle databases easier to query using AI tools, without moving data around. It’s plug-and-play for the AI world. That, along with the Oracle AI Cloud Infrastructure, is expected to cause a spike in cloud demand for years.

At the end of the report, Oracle’s board declared a quarterly dividend of $0.50 per share. That payout will go to all common stockholders who are on the books by the close of business on October 9. The actual payment will be made on October 23.

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