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Oracle’s NetSuite division reported a revenue of $1 billion in the first quarter of fiscal 2026, reflecting a growth of 16% year-over-year. This surge is part of a broader cloud revenue increase for Oracle, which climbed 28% to $7.2 billion during the same quarter. The integration of over 100 AI agents within NetSuite enhances its appeal, as businesses increasingly transition from on-premises systems to cloud solutions.
Oracle’s Remaining Performance Obligations reached $455 billion, a 359% increase year-over-year, indicating substantial future revenue potential. However, the NetSuite division primarily targets mid-sized businesses—a narrower market than Oracle’s broader infrastructure services, which serves companies of all sizes. Major competitors in the cloud ERP space include Microsoft’s Dynamics 365 and SAP, which command approximately 17% of the global ERP market.
Year-to-date, shares of Oracle (ORCL) have returned 20.2%, outperforming the Zacks Computer and Technology sector, which returned 6.3%. The forward 12-month Price/Sales ratio for Oracle is currently 7.64x, compared to the industry average of 7.36x.
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