Oracle’s Cloud Backlog Skyrockets 359% to $455 Billion on Mega-Deals

Oracle's cloud division just rewrote the rules of enterprise software scaling. The Austin-based tech giant reported a staggering 359% surge in remaining performance obligations (RPO), catapulting its contract backlog to $455 billion after securing four multi-billion dollar deals with three clients in Q1 FY2026.

Cloud revenue jumped 28% year-over-year to $7.2 billion, propelling total quarterly revenue to $14.9 billion. Yet the growth wasn't uniform—legacy software sales dipped 1% to $5.7 billion, highlighting the company's accelerating pivot toward cloud infrastructure.

CEO Safra Catz revealed the explosive backlog growth stems from unprecedented demand for Oracle's cloud solutions. The company's operating cash FLOW over the past twelve months reached $21.5 billion, up 13%, while short-term deferred revenue stands at $12.1 billion.

Investors shrugged off mixed bottom-line results. GAAP earnings per share slipped 2% to $1.01, but non-GAAP EPS ROSE 6% to $1.47. The market appears focused on Oracle's cloud trajectory rather than temporary earnings pressure.