Oracle's 22% year-to-date decline entering September 10 is the valuation
compression that makes the Q1 beat structurally significant, not just
episodically positive. The stock fell because Oracle took on more than $100
billion



<[link removed]>



Сⅼіϲkhеrе and I'll reveal the shocking details. <[link removed]>





Oracle's Cloud Infrastructure Revenue Just Jumped 121%. The Stock Was Down
22% Before Yesterday.
Written by Evan Brooks · September 11, 2026







What Oracle Reported

* Oracle (NYSE: ORCL) reported fiscal Q1 FY2027 earnings after the close on
September 10. Adjusted EPS:$1.92 vs. $1.74 expected. Revenue: $19.35 billion vs.
$19.14 billion expected — up 30% year over year. Shares jumped 7% in premarket
trading on September 11.
* Oracle Cloud Infrastructure revenue surged 121% year over year to $7.4
billion, beating the $7.09 billion consensus. Total cloud revenue grew 62% to
$11.61 billion, topping the $11.51 billion estimate. Oracle's remaining
performance obligations hit$664 billion — an increase of $209 billion —
including over$30 billion in new AI cloud agreements signed in the quarter.
* The result came against a backdrop of a 22% year-to-date stock decline
before the print. Citi analysts reiterated a Buy rating, saying Oracle had met
expectations and "cleared the runway" for its upcoming Investor Day. Q2
guidance called for revenue growth of30% to 34%, with cloud revenue rising 64%
to70%. Full-year FY2027 revenue guidance remains at least $90 billion.
Why the Stock Was Down 22% Before a Quarter That Doubled Infrastructure
Revenue
Oracle's 22% year-to-date decline entering September 10 is the valuation
compression that makes the Q1 beat structurally significant, not just
episodically positive. The stock fell because Oracle took on more than$100
billion in debt to fund an expansive AI data center buildout — a capital
allocation decision that sent free cash flow deep into negative territory in
fiscal 2026 and raised the question that dominated analyst notes for three
quarters: when does the spending translate into revenue, and is the revenue
durable enough to justify the cost of capital? The September 10 print answers
the first part of that question. OCI revenue at$7.4 billion, up 121% year over
year, is not a rounding error or a one-quarter phenomenon — it is the product
of a backlog that was already visible in the prior quarter's$638 billion
remaining performance obligations figure, now updated to$664 billion. The
conversion from backlog to recognized revenue has begun at a rate the market
had not priced in.
The contrast with the June quarter is instructive. When Oracle reported Q4
FY2026 on June 10, it beat on earnings and revenue — but the stock fell10% in
extended trading because the company announced plans to raise another$20 billion
in debt to fund its AI buildout. The market's reaction to that quarter was a
judgment that the spending was outrunning the revenue. The September 10 quarter
makes the opposite argument: OCI revenue more than doubled while the company
held full-year guidance at$90 billion, signaling that the existing capex
commitment is producing the growth rate required to justify it. The remaining
question — whether the free cash flow trajectory normalizes fast enough to
service the debt stack — is what the Investor Day, which Citi called the next
key catalyst, will need to address.





I recently visited Mar-a-Lago...

And now I'm prepared to put my reputation on the line.

Since 1998, my proprietary system would've returned 13,126% in backtests.

(That's 13X the S&P and 106X the average investor, according to JP Morgan.)

However, one investment I just uncovered could be my biggest winner of all...

It involves President Trump, Elon Musk, trillions of dollars, China...

And a MAJOR upgrade to the artificial intelligence revolution.

Click here to see the name and ticker symbol of the company at the center of
it all.
<[link removed]>
Ad by InvestorPlace Media




The $30 Billion in New AI Contracts and What They Say About Demand
Concentration
Oracle signed over $30 billion in new AI cloud agreements in the quarter
ending August 31 — a figure that exceeds Oracle's total annual revenue from
just three years ago. The customer behind the largest portion of that demand is
OpenAI, which has been building out its inference infrastructure on Oracle
Cloud Infrastructure as its ChatGPT user base scales. That concentration
matters for reading the backlog durability: a$664 billion RPO figure driven
heavily by one AI foundation model company is a different risk profile than the
same figure spread across thousands of enterprise customers. Mizuho, which
reiterated an Outperform rating with a$320 price target — implying roughly 98%
upside from the pre-earnings close — framed OpenAI demand as a structural
tailwind rather than a cyclical order. Whether that framing holds depends on
OpenAI's own revenue trajectory and its capital availability to continue
expanding on OCI rather than building its own infrastructure.
The Software Decline That Sits Inside the Beat
One line in Oracle's Q1 report did not beat: software category revenue came
in at$5.55 billion, down 3% year over year and below the StreetAccount
consensus of$5.61 billion. That decline is the structural counterweight to the
cloud infrastructure beat and deserves more attention than it has received in
the premarket coverage. Oracle's legacy software business — the on-premises
database and applications revenue that funded the company for four decades — is
shrinking as customers migrate workloads to cloud environments, including OCI.
The migration is by design and the direction is correct for Oracle's long-term
positioning, but the pace of the legacy decline relative to cloud growth
determines whether total revenue grows fast enough to service the debt stack
accumulated to fund the buildout. In Q1, total revenue grew30% while legacy
software contracted3% — the arithmetic still works, but the software line is a
variable that will matter more as the cloud growth rate normalizes from its
current121% OCI pace toward something more sustainable.

Sources: CNBC · CoinPaper · Blockonomi · Mizuho · Citi · Benzinga · Yahoo
Finance · TradingKey




<[link removed]>

 

[email protected] <mailto:[email protected]> is on The Raw
Capital list because you opted in before the crowd caught on.

If we go quiet — look in promotions, updates, or wherever your inbox files
things it hasn't figured out yet.

Unsubscribe
<[link removed]>
. We'll part ways cleanly.

If something's off, you can rea <mailto:[email protected]>ch
<mailto:[email protected]>us here <mailto:[email protected]>

254 Chapman Rd Ste 208 Newark, Delaware 19702.
<[link removed]>

Privacy Policy <[link removed]>



 

© 2026 Alpha One Marketers LLC. All rights reserved.