Oracle Corporation (ORCL) reported a significant increase in AI cloud contracts, booking over $30 billion in the first quarter of fiscal 2027. This surge raised the company’s remaining performance obligations (RPO) to a record $664 billion, a year-over-year increase of $209 billion. Management anticipates approximately 50% of this RPO will convert into sales within the next 36 months, indicating a robust long-term revenue pipeline.
For the first quarter, Oracle’s Cloud Infrastructure revenues soared 121% to $7.4 billion, while capital expenditures reached $28.5 billion. Despite negative free cash flow of $5 billion, the company expects full-year CapEx to be around $90-$95 billion to expand data-center capacity, underscoring the capital intensity of its AI initiatives.
Microsoft (MSFT) and Amazon (AMZN) are also expanding their AI cloud services. Microsoft reported a commercial RPO of $678 billion in the fourth quarter of fiscal 2026, up 84%, while AWS saw a backlog of $496 billion in Q2 2026, marking a significant year-over-year increase. Both companies are intensifying competition with Oracle for long-term AI workloads and revenue visibility.
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