Oracle Q1 Stunner: RPO Explodes By 359% to $455 Billion; World's Hottest Hyperscaler!!!

In today's Cloud Wars Minute, I discuss Oracle's amazing Q1
results.


Highlights


00:17 — Oracle yesterday released its fiscal Q1
results for the quarter ended August 31. And while its revenue
figures for those three months were nice, the killer here was its
RPO: remaining performance obligation. Oracle reported remaining
performance obligation up 359% to $455 billion.


01:24 — Microsoft's cloud revenue is almost
seven times bigger than Oracle's. Who's winning the most business
out into the future? Several weeks ago, Microsoft reported its
RPO was up 37% to an astonishing $368 billion, the biggest RPO
number I had ever seen. Several weeks later, we see Oracle blow
that away. It's got an RPO nest egg out there that is 25% bigger
than Microsoft's.


02:35 — Now, Oracle CEO Safra Catz, in perhaps
the understatement of the year, said, "Oracle is off to a
brilliant start in FY26." My point there is, I've just never seen
anything like this. Astonishing. And we can point to the OpenAI
deal that's due to start in a few years, where OpenAI has
contracted with Oracle to pay Oracle $30 billion a year for
Oracle Cloud Infrastructure.


03:09 — Catz referenced a number of gigantic
contracts that Oracle has signed, and they'll be talking about
more soon. Catz did take the unusual step of projecting future
revenue for Oracle Cloud Infrastructure — OCI — and its growth
over the next five years, including the current year we're in.
And I want to emphasize: These numbers don't include Oracle's
cloud applications business.


03:50 — So, for this year — FY26, ending May 31,
2026 — OCI revenue will grow 77% to $18 billion. Then next year,
up 44% to $32 billion. Then it's going to take a spectacular leap
— up 128% to $73 billion. I believe that's when the OpenAI
revenue starts to kick in. Then 56% to $114 billion for fiscal
'29. Fiscal '30, up 26% to $144 billion. Again, I've never seen
any numbers like this.


05:06 — It's a very different approach Oracle
has taken. These numbers show just an astonishing future for
Oracle, and I think it's fair to say too that these results from
Oracle — and the indication of its future success — have
definitely, completely rattled — turned upside down — the balance
of power in the Cloud Wars. Oracle is the hottest hyperscaler in
the world now, by far and often.


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