Oracle’s rapid expansion in Remaining Performance Obligations (RPO) indicates long-term revenue sustainability, with a backlog of $523 billion in Q2 fiscal 2026. RPO growth is driven by cloud and AI contracts with Meta and NVIDIA, boosting confidence in sustained growth beyond 2026.

Competing with Alphabet and Microsoft in cloud and AI infrastructure, Oracle faces tough rivals. Alphabet’s cloud backlog reached $155 billion, leveraging AI tools for billion-dollar deals. Microsoft’s Azure and Cloud services reported 40% growth, with $392 billion in commercial remaining performance obligations.

Despite a 19.8% decline in Oracle’s stock performance, the company’s forward 12-month P/E ratio of 24.63x offers a valuation lower than the industry average. With a Zacks Rank #3 (Hold), Oracle’s fiscal 2026 earnings estimate is $7.38 per share, reflecting 22.39% growth from fiscal 2025.

Read more at Nasdaq: Will Oracle’s RPO Expansion Strengthen Long-Term Revenue Outlook?