Oracle’s Disruptive Nature is Very Compelling

Oracle's contract backlog has surged 363% year over year to $638 billion, reinforcing its positioning as the most cost-effective AI infrastructure provider. During Q4, Oracle's IaaS revenue expanded by 93%, with 404% growth in Multicloud AI Database. The company has embedded 72 datacenters within AWS, Azure, and Google clouds, driving AI spending regardless of the hyperscaler customers select.

Despite not making the top 10 list in a recent stock market analysis, Oracle's thesis remains compelling due to its lower-cost AI infrastructure and growing customer contracts. On the Q4 fiscal 2026 call, co-CEO Clay Magouyrk affirmed Oracle Cloud Infrastructure as "the most highly secure, highest performing, most flexible, lowest-cost infrastructure available anywhere."

Oracle's Remaining Performance Obligations (RPO) stood at $638 billion, up 363% year over year, with $75 billion tied to prepaid or customer-supplied GPU arrangements. The company's IaaS revenue grew from +55% in Q1 to +93% in Q4, while its overall revenue now comprises 52% cloud sales. Management projected fiscal 2027 revenue of $90 billion with non-GAAP EPS of $8.05, maintaining a long-range plan of over 31% revenue CAGR and 28% EPS CAGR through fiscal 2030.

With 97.5% global GPU utilization and 211 live and planned regions worldwide, Oracle's multicloud strategy provides a unique advantage, securing contracts regardless of the customer's choice of cloud provider. Despite a 31.07% price decline over the past year, Oracle's forward multiple of 21 is justified by the company's cloud compounding growth.

The company's dividend remains steady at $0.50 per quarter, and its debt levels are manageable. Oracle's impressive growth, economics, and strategic position in the market make it an attractive investment for those willing to weather the dilution and interest expense.