Oracle stock jumps on outlook, despite earnings miss

00:00 Josh

All right, taking a look now at Oracle as that company reports its first quarter results and you can see that stock rocketing higher here in the after hours. We’re up at 20%. Let’s get to the numbers. Q1 EPS buck 47 versus expectations of 148. Q1 revenue, 14.93 billion versus 15.03 billion estimate. Q1 cloud infrastructure revenue, 3.3 billion. Here’s a number, remaining performance obligations, 455 billion. That was an increase according to the company of 359%.

00:36 Josh

Now let’s get to the outlook because that’s what I think investors are cued on here, um and focused on. Oracle sees cloud infrastructure revenue up 77% to 18 billion in 2026. And I’m looking for him commentary here from Oracle CEO Safra Catz. She is saying we signed four multi-billion dollar contracts with three different customers in Q1. And as for the forecast,

01:05 Josh

She is saying we expect Oracle cloud infrastructure revenue, it’s going to grow 77% to 18 billion this fiscal year. And then she says it’s going to increase to 32 billion, 73 billion, 114 billion and 144 billion over the subsequent four years. She says Oracle is off to what she says is a brilliant start to 2026. This stock was already running hot into this print. It was up about 40% this year. You’re up another 21% now in the after hours. Nancy, I got to turn to you.

01:25 Josh

As a shareholder in this one, give me your take on the print.

01:28 Nancy

Gosh, I mean, you don’t get this very often, Josh, thank you. It’s the it’s the largest holding in our our ETF TGLR. Uh Broadcom was yesterday, today it’s it’s Oracle. Uh and and I think you have to think about the company as a following a model that Microsoft sort of pioneered. So they went from packaged software to kind of cloud-based. And remember, Larry Ellison was vilified by the marketplace that he missed cloud computing. So for about five years, he took out an ad in the Wall Street Journal, bottom right hand corner once a week, we’re a cloud computer. Now they’ve demonstrated it. And I think that as a shareholder, you saw the outlook is what’s compelling. I mean it’s not the earnings report. And it and it rarely has been with them in recent years. It’s it’s no longer a capex light company. It’s a cap intensive company. There rumors they don’t have the balance sheet to expand the capex. I think they’ve got the backlog. So we’re going to hold on. I mean if it

02:35 Nancy

if it sold off today, we were going to buy more, but I

02:37 Josh

You would have bought the dip.

02:38 Nancy

We would have bought the dip because we believe in what the company’s doing. And I think if if you if you love the hyperscalers, you got to love this. It’s it’s kind of like Broadcom’s a poor man’s Nvidia, Oracle’s the poor man’s Microsoft.

02:51 Josh

Well, let let me ask you about that. When you think of the great cloud computing competition and market, and we think of investors as you know that Microsoft, Google, and Amazon, how does how does, you know, Larry and Safra’s company fit in there?

03:02 Nancy

Well, they’re partnering with these companies. And then if you think about law of big numbers, you know, poor Microsoft’s only growing Azure at 30% a year. I mean, you you saw these numbers. This is what’s going to drive um the stock price into the future and they pay a dividend and they grow the dividend. So I I I’ve owned the company for almost 40 years and it always paid to own it when Larry was off of the America’s Cup sailboat and in in the CEO’s suite. And he’s engaged, he’s the chief technology officer. So, I love it. I’m going to continue to hold it. Uh, yeah, we’re very happy.

03:41 Josh

That stock surging 20% in the after hours. Good news for Nancy, good news for Nancy’s clients.