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Oracle Corporation (ORCL) has secured multibillion-dollar cloud partnerships with major companies including OpenAI, Meta, NVIDIA, and AMD, significantly impacting its fiscal outlook. Notably, OpenAI’s five-year deal is valued at approximately $300 billion, marking one of the largest cloud contracts ever. Oracle anticipates that 33% of its Remaining Performance Obligations (RPO) will convert into revenues within a year, projecting revenues of $66.75 billion for fiscal 2026, reflecting a 16.3% year-over-year growth.
To capitalize on this demand, Oracle is committing $35 billion in capital expenditures for fiscal 2026 to establish 37 new multi-cloud data centers. This expansion aims to support its growing AI backlog as adoption accelerates in the cloud sector.
As of now, Oracle’s shares have risen by 81% year-to-date, outperforming the Zacks Computer and Technology sector’s growth of 20.3%. The Zacks Consensus Estimate indicates an earnings projection of $6.75 per share for fiscal 2026, representing an 11.9% increase compared to the previous year.
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