Oracle Q1 2026 Earnings Beat and Market Reaction
Oracle Corp delivered a blow‑out first‑quarter report, posting total revenue of $19.35 billion, surpassing the consensus estimate of $19.14 billion and representing a 30% year‑over‑year increase. Adjusted earnings per share came in at $1.92, ahead of the expected $1.74, while net profit surged to $4.76 billion, a 60% rise from the prior year.
The cloud segment was a primary driver, with total cloud revenue reaching $11.61 billion, up 62% YoY. Within cloud, Infrastructure‑as‑a‑Service (IaaS) revenue climbed to $7.40 billion, a 121% YoY jump. Oracle also reported a record $664 billion backlog (RPO) after securing over $30 billion in new AI‑focused cloud contracts during the quarter.
In a parallel commentary from Oracle’s internal machine‑learning engine, the model highlighted a 93% surge in OCI (Oracle Cloud Infrastructure) revenue last quarter, which helped lift total revenue 21% YoY to a record $19.2 billion. The same model noted a $638 billion backlog—exceeding the company’s market capitalization—and highlighted $67 billion in new AI‑related data‑center capital expenditures booked in the quarter. Street analysts were cited as valuing the stock near $253 per share, roughly double the prevailing market price.
Following the earnings release, Oracle’s shares jumped over 7% in pre‑market trading, contributing to a 16% month‑to‑date gain for the stock, which the article notes has driven the broader AI‑selected portfolio to a +192.86% total return since the AI models launched in November 2023, outpacing the S&P 500 by +113.64%.
The piece also listed other September AI‑selected winners: Intel (NASDAQ: INTC) rose 12.76%, AMD (NASDAQ: AMD) 9.57%, Hewlett Packard Enterprise (NYSE: HPE) 8.55%, and Arm (NASDAQ: ARM) 8.24%, with more than 20 additional stocks gaining over 5%.
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