--- title: "Oracle's $664 Billion Backlog Is Finally Starting to Convert, Analyst Says" type: "News" locale: "en" url: "https://longbridge.com/en/news/298750112.md" description: "Oracle reported strong Q1 results, beating estimates with $19.3B revenue and surging cloud growth. AI contracts exceeded $30B, pushing backlog to $664B. Analysts highlighted accelerating OCI growth and raised fiscal 2027 forecasts. Multiple firms maintained positive ratings, citing robust demand and successful capacity deployment despite high capex." datetime: "2026-09-11T15:15:56.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/298750112.md) - [en](https://longbridge.com/en/news/298750112.md) - [zh-HK](https://longbridge.com/zh-HK/news/298750112.md) generator: "portal-rs" --- # Oracle's $664 Billion Backlog Is Finally Starting to Convert, Analyst Says **Oracle Corp (NYSE:ORCL)** Thursday reported upbeat fiscal first-quarter results. Here are some key analyst takeaways: - Guggenheim Securities analyst John DiFucci reiterated a Buy rating and price target of $400. - Citizens JMP Securities analyst Patrick Walravens maintained a Market Outperform rating and price target of $285. - Stephens analyst Brett Huff reaffirmed an Equal Weight rating and price target of $175. - Cantor Fitzgerald analyst Thomas Blakey maintained an Overweight rating and price target of $284. - DA Davidson analyst Gil Luria reiterated a Buy rating and price target of $225. Check out other analyst stock ratings. **Guggenheim Securities:** Oracle reported strong quarterly results, with total revenue of $19.3 billion and non-GAAP earnings of $1.92 per share coming in higher than consensus estimates of $19.2 billion and $1.74 per share, respectively, DiFucci said in a note. Cloud Services revenue, which includes IaaS and SaaS, grew by 61% in constant currency terms to $11.6 billion, topping consensus of $11.5 billion, the analyst stated. "ORCL signed more than $30B in new AI infrastructure contracts which further diversified its customer base across a diverse set of data center campuses," he further wrote. **Citizens JMP Securities:** Oracle’s revenue grew 30% year-on-year and 21% sequentially to $19.3 billion, topping consensus of $19.1 billion, Walravens said. Operating margin of 42.5% came in higher than estimates of 40.9%, he added. Oracle Cloud Infrastructure (OCI) growth accelerating to 121% year-on-year, from 93% in the previous quarter, was "impressive," the analyst stated. While management’s second-quarter guidance came in-line with expectations, they raised their fiscal 2027 projection to revenue of $90 billion, implying around 34% growth and non-GAAP earnings of $8.10 per share, both of which were higher than consensus estimates, he further noted. **Stephens:** Oracle reported a modest beat across most metrics, Huff said. The company hit record totals and cloud revenues, both in absolute dollar terms and on a growth basis, he added. With demand continuing to outpace supply, Oracle booked more than $30 billion of additional AI cloud contracts in the first quarter, pushing RPO (remaining performance obligation) to $664 billion, the analyst stated. Management raised their fiscal 2027 pro forma earnings guidance by 5 cents per share, he further noted. **Cantor Fitzgerald: This was the first time in** Oracle’s history that it grew revenues sequentially from the fourth quarter, Blakey said. While revenue growth was strong, at 30% year-on-year, gross margin came under pressure due to "the ongoing data center ramp and mix shift toward infrastructure," he added. Capex of $28.5 billion in the first quarter was significantly higher than Street’s estimate of $19.3 billion, the analyst stated. The company’s reaffirmation of its fiscal 2027 capex of $90-$95 billion indicates that "Oracle continues to fund its build disproportionately with customer and supplier capital," he further wrote. **DA Davidson:** Oracle’s results exceeded expectations on both revenue and earnings, Luria said. RPO increased by $26 billion sequentially to reach $664 billion, he added. "Importantly, RPO conversion is beginning to inflect higher as Oracle executes against its capacity buildout, deploying approximately 850 MW of capacity during the quarter, nearly 75% of FY26’s total capacity additions," he further wrote. **ORCL Stock Price Activity:** Oracle shares were up 0.73% at $154.06 on Friday, according to Benzinga Pro data. **Read Also: Oracle’s AI Data Center Buildout Is Running Into Delays — Co-CEO Clay Magouyrk Says Betting on Everything Going on Time Is a ‘Bad Plan’** *Photo: Sundry Photography / Shutterstock.com* ### Related Stocks - [ORCL.US](https://longbridge.com/en/quote/ORCL.US.md) - [ORCX.US](https://longbridge.com/en/quote/ORCX.US.md) - [ORCU.US](https://longbridge.com/en/quote/ORCU.US.md) - [ORCS.US](https://longbridge.com/en/quote/ORCS.US.md) - [ORCL-D.US](https://longbridge.com/en/quote/ORCL-D.US.md) ## Related News & Research - [Oracle exec tells workers that its own AI rollout didn't go so smoothly](https://longbridge.com/en/news/299423584.md) - [Why Oracle stock fell quickly today](https://longbridge.com/en/news/298945450.md) - [‘Beware the Trap,’ Says Investor About Oracle Stock](https://longbridge.com/en/news/298937750.md) - [Oracle has committed hundreds of billions to AI data centers. 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