Oracle (ORCL.N) announced on Tuesday that it expects booked revenue at its Oracle Cloud Infrastructure (OCI) unit to surpass half a trillion dollars, driven by surging demand for its lower-cost cloud services. The news sent its shares up 27% in after-hours trading.
The company’s remaining performance obligations (RPO) a key measure of booked revenue soared 359% to $455 billion in the quarter ending August 31. “Over the next few months, we expect to sign several more multi-billion-dollar customers, and RPO is likely to exceed half a trillion dollars,” said CEO Safra Catz.
Oracle projects OCI revenue to climb 77% this fiscal year to $18 billion, reaching $144 billion over the next four years. Analysts say demand for cost-effective AI-ready cloud tools is fueling this growth. Oracle has also integrated AI models, such as ChatGPT, Gemini, and Grok, directly into its cloud services, providing customers with streamlined access. Despite being smaller than rivals, Oracle’s strategy is paying off. Deals with Amazon, Alphabet, and Microsoft boosted OCI client revenue 1,529% in the first quarter.
Oracle is not only staying competitive in the cloud market, but also setting the standard by providing integrated solutions across many contexts. Melissa Otto, head of research at S&P Global’s Visible Alpha, said this would draw in even more companies searching for flexible cloud choices.
Also Read:
In Texas, a Deadly Measles Outbreak Does little to Dispel Vaccine Skepticism
