Oracle (ORCL) and Microsoft (MSFT) reported strong fourth-quarter results for fiscal 2026, highlighting robust demand in the artificial intelligence (AI) sector. Oracle’s cloud infrastructure revenues surged 93% year-on-year, contributing to total fiscal revenues of $67.4 billion, a 17% increase. Microsoft, on the other hand, achieved revenues of $90 billion, up 18%, with Azure growth reaching 43% and surpassing $100 billion in annual revenues for the first time.
Oracle’s remaining performance obligations (RPO) totaled $638 billion, a 363% increase year-over-year, reflecting substantial contracted AI infrastructure demand. In contrast, Microsoft’s RPO grew to $678 billion, an 84% increase year-over-year. Oracle projects fiscal 2027 revenues at $90 billion, with non-GAAP EPS at $8.05, while Microsoft’s earnings estimate stands at $19.59 per share, indicating a 9.14% growth year-over-year.
Valuation-wise, Oracle trades at a forward P/E ratio of 16.57, compared to Microsoft’s 23.97, presenting a potential investment opportunity for those seeking exposure to enterprise AI growth. Despite Oracle’s year-to-date share decline of 26.7%, the company’s record backlog and expanding AI partnerships present a convincing buying case in the current market environment.
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