Oracle Sets New Record with $664B AI Cloud Contract Backlog

Oracle has reported a record-breaking quarter, with a staggering $664 billion in remaining performance obligations (RPO). This marks the largest contracted cloud backlog in the company’s history, driven by the surging demand for AI cloud infrastructure.

The reported figure exceeded analyst expectations, which were approximately $640 billion. It also represents a year-over-year increase of $209 billion, as per Oracle’s Q1 fiscal year 2027 results, released on Thursday, September 10.

During this quarter alone, Oracle booked over $30 billion in new AI cloud contracts. The company’s cloud infrastructure revenue (OCI) saw a 121% year-over-year surge, reaching $7.4 billion. Total revenue also grew by 29.6%, hitting a record $19.345 billion, and surpassing Wall Street consensus.

CFO Hilary Maxson disclosed that the majority of these new contracts were signed through customer prepayment or bring-your-own-hardware arrangements. This means that they do not require any additional capital from Oracle. Oracle CEO Clay Magouyrk posited that the company’s own capital expenditure is now effectively decoupled from its growth rate.

Furthermore, Oracle added an extra 850 megawatts of data center capacity during the quarter. It also supplied over 300,000 GPUs to AI cloud customers, almost tripling Q4 fiscal 2026 levels.

Following the earnings release, Oracle’s stock surged 7% to $164.25 on Friday. This positive trend also pulled cloud infrastructure peers CoreWeave and Nebius up by 4% each.

Source: ERP Today — Oracle’s $664 Billion Backlog Comes With a New Financing Model