5 things Oracle's CEOs want you to know

5 things Oracle's CEOs want you to know Aditya Raghunath Sun, June 14, 2026 at 12:17 AM GMT+7 5 min read ORCL Oracle just wrapped its fiscal year 2026 with record quarterly revenue of $19.2 billion, up 21% year-over-year (YoY), and its leadership team used the June 10 earnings call to send a clear message to investors: the biggest growth is still ahead. Cloud infrastructure revenue surged 93% in the quarter. The remaining performance obligations (RPO) number, essentially a measure of future contracted revenue, hit a figure that even surprised Wall Street veterans. And two CEOs, a new chief financial officer, and one very large capital expenditure plan all pointed in the same direction. Here are the five things Oracle (ORCL) CEO Mike Sicilia, Cloud CEO Clay Magouyrk, and CFO Hilary Maxson want you to walk away knowing. Let’s start with how big Oracle’s revenue backlog is. Oracle's RPO, or remaining performance obligations, which is the total value of customer contracts that haven't been recognized as revenue yet, finished fiscal year 2026 (ended in May) at $638 billion. That's up 363% in a single year. To put that in plain terms: Oracle has nearly two-thirds of a trillion dollars in signed customer commitments sitting on its books. About 12% of that converts to revenue in the next 12 months. Another 34% follows in the 13- to 36-month window. It means over the next three years, Oracle will report cumulative revenue of $294 billion. Comparatively, it ended fiscal 2026 with sales of $67.36 billion. "Unprecedented visibility," is how CFO Maxson described it on the call. This is the counterintuitive story of the quarter. Cloud CEO Magouyrk disclosed $67 billion in new artificial intelligence infrastructure contracts signed in the fourth quarter. Of that, the majority was either bring-your-own-hardware or prepaid arrangements. The total of those deal types now sits at $75 billion. The natural question: if customers are bringing their own chips, what are they paying Oracle for? Micron sits at the center of a red-hot chip rally IBM CEO sends blunt message on AI and quantum computing Anthropic CEO makes shocking admission about AI The answer, according to Magouyrk, is everything else, which includes data center design, network architecture, security, cloud operations, identity management, and load balancing. Oracle provides the full stack around whatever hardware a customer brings. And, critically, Magouyrk said margins on these deals are "at or better" than those in standard contracts. Basically, customers trust Oracle to build and run billion-dollar infrastructure around their own capital. When an analyst on the call raised the specter of new entrants, including SpaceX reportedly building data centers in Europe, Magouyrk didn't pivot to a product comparison. Oracle's global GPU utilization rate is 97.5%. Even when contracts come up for renewal, GPUs that aren't renewed by one customer are picked up by another in the same quarter. Of the 35,000 GPUs from 59 customers that came up for renewal in the fourth quarter, 49% of customers renewed for 92% of those GPUs. The remaining capacity was quickly absorbed. His broader point: Oracle wins in relationships, operational execution, and hardware availability. The cloud, he argued on the earnings call, is a service business, and after several years of operating massive clusters for these customers, the relationships are sticky. Apps CEO Sicilia made one thing clear: the experimental phase of enterprise artificial intelligence is over. Oracle shipped more than 1,000 AI agents across its application suites in the past year. According to Sicilia, they "reason, decide, and execute work across processes." The pitch to customers is essentially: don't build AI infrastructure from scratch. Keep using Oracle apps, and AI features arrive automatically every quarter. Related: UBS resets Oracle stock price target What's new is how Oracle is monetizing it. The company is rolling out outcome-based pricing, charging per candidate screened by an interview agent, or per upsell transaction completed in hospitality. In Q4, 33 customers purchased token bundles to access more advanced AI reasoning across Oracle's suite. In fiscal year 2027, this pricing model expands across Oracle's full application fleet. Sicilia called it a way to help customers "align their spending with the value being generated." Oracle plans to spend roughly $70 billion net on capital expenditures in fiscal year 2027. It also plans to raise around $40 billion in debt and equity, including a previously announced $20 billion equity issuance. Those numbers, taken on their own, would rattle most investors. Between $20 billion and $25 billion of that capital expenditure is funded by customer prepayments. In other words, Oracle collects the cash before it spends it. "From a funding standpoint, what's happening here is that these structures are enabling us to have a lower cash CapEx requir

5 things Oracle's CEOs want you to know

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5 things Oracle's CEOs want you to know

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