Oracle reports 21% revenue growth and $638 billion in remaining performance obligations but sees a stock decline.
Oracle Corporation (ORCL) reported fourth-quarter revenue of $19.2 billion, a 21% year-over-year increase, while non-GAAP operating income rose 22% to $8.6 billion. The company secured $395.8 million in new contracts, including a U.S. government deal to replace over 100 federal HR systems with a centralized platform.
Remaining Performance Obligations (RPOs) surged to $638 billion from $553 billion last quarter, signaling strong future earnings visibility. Oracle expects first-quarter revenue growth of 27%-29% and cloud revenue growth of 58%-64%. Despite these gains, ORCL shares traded lower following the announcement.
The stock’s decline contrasts with the company’s robust financial outlook, driven by its expanding cloud business and high-value government contracts.