Oracle shares 10% plunge, RPO at 6,400billion dollars draws attention

Oracle's share price fell 10% in a single day immediately after the earnings announcement. The company reported that its results for 2026were somewhat lukewarm. The share-price decline occurred immediately after the earnings announcement.

The company's remaining performance obligations (RPO) increased 363% year over year to 6,400billion dollars. RPO refers to the balance of contracts that the company has not yet recognized. The company report explained that this balance had increased substantially.

The report said that this RPO amount represents about 7years of expected revenue. The company said that most AI-related contracts are expected to be recognized as revenue starting in 2027. The company explained that the timing for converting AI contracts into revenue has been set for a later period.

The company announced that quarterly revenue increased by 20.8%. It disclosed that operating profit for the same quarter rose by 54%. Earnings per share (EPS, profit earned per share) reached an all-time high.

Cloud services revenue grew by 47%. The company’s report highlighted the growth momentum in its cloud business. The report stated that cloud revenue was a key factor in the improvement in results.

Among analysts, 78% are maintaining buy ratings. The consensus average price target indicates 50% upside from the current share price. Some analysts expected a rebound in the share price by the end of summer.