By Dean Seal

Oracle had a smaller revenue gain in the fiscal first quarter than analysts had been expecting, but touted major contract wins during the quarter that are inflating its backlog.

The database-software company posted a profit of $2.93 billion, or $1.01 a share, for the quarter ended Aug. 31, about flat with the year-earlier quarter.

Stripping out one-time items, adjusted earnings were $1.47 a share. Analysts polled by FactSet had been expecting $1.48 a share.

Revenue climbed 12% to $14.93 billion, shy of analyst targets for $15.04 billion, according to FactSet.

Shares surged 18% to $285 after hours. Investors seemed more interested in the company's future revenue prospects.

Oracle ended the quarter with total remaining performance obligations, a measure of contracted revenue it expects to collect, of $455 billion. That's up more than fourfold from the same quarter a year earlier.

The company signed four multi-billion-dollar contracts with three different customers during the quarter, Chief Executive Safra Catz said. "It was an astonishing quarter -- and demand for Oracle Cloud Infrastructure continues to build," she said.

Oracle expects to sign several more multi-billion-dollar customers in the next few months and push its remaining performance obligations up to more than $500 billion, Catz said.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

September 09, 2025 16:26 ET (20:26 GMT)

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