Oracle Crushes Q4, Led by RPO Surge to $638B, +363%

**Bob Evans** (0:00)
Hello, my friends, welcome back to Cloud Wars Minute, and we had a monster Q4 report from Oracle yesterday. Absolutely crushed their numbers for Q4, led by an astonishing leap in their backlog, or remaining performance obligation of $638 billion, what it now totals. That's an increase of 363 percent. And no, those are not misprints.
RPO represents business that's fully contracted, not yet recognized as revenue. So it's pipeline backlog as opposed to revenue, which has already been posted for what has happened in the past. So I wanted to quickly pop out a couple highlights here that go along with that just remarkable RPO growth. Cloud revenue overall was up 47 percent to 9.9 billion. Within that, Cloud applications grew 10 percent to 4.1 billion, and the big star of the company now, their Cloud infrastructure business, was up 93 percent to 5.8 billion dollars.
One other number that Oracle put in its Q4 press release that is pretty darn impressive, their multi-Cloud AI database business, they said was up 404 percent, and they said that now makes this the fastest growing product in the company's history. Now, the multi-Cloud AI database is a brainchild of Larry Ellison from a few years ago. Remember, this is where now in partnership with its hyperscaler competitors, Microsoft, Google Cloud, and AWS, the Oracle database is now made available to the customers of Microsoft, Google Cloud, and AWS via their own Clouds and sold in many cases by the salespeople of those companies. Right? Only in the Cloud Wars could something like that happen, but this is now continues to show enormous demand from customers, resulting in that 404% growth. Looking ahead a little bit, Oracle guided in Q1, they said their Cloud business will grow between 57 and 63%. So called about 60%.
And that extends a long running streak of fast growing numbers there for Oracle's Cloud revenue or Cloud business.
Oracle also said in its Q4 press release that it will be doing no more borrowing to fund its data center expansion throughout for calendar 2026 Certainly possible for next year, but for this calendar year, no more borrowing. I think most people would yawn or overlook that fact. There have been a lot of folks on Wall Street though, now as I've mentioned, that this has caused them fainting spells and pearl clutching, and all sorts of the clumped-itude there because nobody's done this before. And Oracle stepped out and said, you know what? We need to have different sources of funding to be able to build capacity in our data centers to match. Now, this RPO, that means that, forget the revenue that Oracle has already put in the books for Q4 and all of its fiscal year 2026, it has contracted $638 billion of future business. It has to be able to deliver on those contractual commitments to customers. So it has to build out enormous capacity in its databases. Now, I don't know. I don't think there's a lot of companies that have run into that challenge before. It's a delightful challenge to have, but it is not something that, a lot of companies can just reach into the petty cash box and say, here's $100 billion, $200 billion to fund it. And then recently we saw, as I talked about earlier this week, Google Cloud has also gone into the alternative funding here. They've issued some equity exchanges now. Oracle did that as well along with its borrowing. So I think that the only people who would look at some of these numbers from Oracle and not to sit back and say, well, that was incredibly impressive, were some of these people who were worried that, oh my goodness, Oracle, one of the best financially managed companies of any business in any industry ever, is going to have difficulty paying back these debts when it's already got these astonishing numbers in the books and future contracted business. So really remarkable. I've got an article on this coming up with more details on cloudwars.com, and we'll have lots more early next week on these remarkable numbers in the greatest growth market the world has ever known. Thanks for being with us here at Cloud Wars Minute. I hope you have a fantastic day.