5 things Oracle's CEOs want you to know

Oracle conscionable wrapped its fiscal twelvemonth 2026 with record quarterly gross of $19.2 billion, up 21% year-over-year (YoY), and its enactment squad utilized the June 10 net telephone to nonstop a wide connection to investors: the biggest maturation is inactive ahead.

Cloud infrastructure gross surged 93% successful the quarter.

The remaining show obligations (RPO) number, fundamentally a measurement of aboriginal contracted revenue, deed a fig that adjacent amazed Wall Street veterans.

And 2 CEOs, a caller main fiscal officer, and 1 precise ample superior expenditure program each pointed successful the aforesaid direction.

Here are the 5 things Oracle (ORCL) CEO Mike Sicilia, Cloud CEO Clay Magouyrk, and CFO Hilary Maxson privation you to locomotion distant knowing.

Oracle's monolithic $638B gross backlog 

Let’s commencement with however large Oracle’s gross backlog is.

Oracle's RPO, oregon remaining show obligations, which is the full worth of lawsuit contracts that haven't been recognized arsenic gross yet, finished fiscal twelvemonth 2026 (ended successful May) astatine $638 billion. That's up 363% successful a azygous year.

To enactment that successful plain terms: Oracle has astir two-thirds of a trillion dollars successful signed lawsuit commitments sitting connected its books.

About 12% of that converts to gross successful the adjacent 12 months. Another 34% follows successful the 13- to 36-month window.

It means implicit the adjacent 3 years, Oracle volition study cumulative gross of $294 billion. Comparatively, it ended fiscal 2026 with income of $67.36 billion.

"Unprecedented visibility," is however CFO Maxson described it connected the call.

Oracle’s AI contracts are growing

This is the counterintuitive communicative of the quarter.

Cloud CEO Magouyrk disclosed $67 cardinal successful caller artificial quality infrastructure contracts signed successful the 4th quarter.

Of that, the bulk was either bring-your-own-hardware oregon prepaid arrangements. The full of those woody types present sits astatine $75 billion.

The earthy question: if customers are bringing their ain chips, what are they paying Oracle for?

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The answer, according to Magouyrk, is everything else, which includes information halfway design, web architecture, security, unreality operations, individuality management, and load balancing.

Oracle provides the afloat stack astir immoderate hardware a lawsuit brings.

And, critically, Magouyrk said margins connected these deals are "at oregon better" than those successful modular contracts.

Basically, customers spot Oracle to physique and tally billion-dollar infrastructure astir their ain capital.