Oracle showed after earnings that AI cloud is still going full speed

Oracle $ORCL released Q1 results and the numbers came in better than expected:

Revenue: $19.3B, +30% YoY Adjusted EPS: $1.92 vs. $1.74 expected Cloud revenue: $11.6B, +62%

Cloud infrastructure grew as much as 121% Remaining performance obligations (RPO) hit a massive $664B

Shares initially jumped over 7% after earnings. Investors were pleased mainly by the extreme cloud growth and more than $30B in new AI cloud contracts.

In our view, the results are really strong. The only thing we'd watch is the massive data center investments — Oracle plans Capex of around $90–95B this year and is still burning cash. But if it can gradually convert the huge backlog into revenue, the current valuation could be interesting.

Do you hold Oracle in your portfolio? And do you believe it can actually turn its huge AI backlog into profits? 👇