Chip Stock Investor Podcast Can Oracle Deliver On Their Revenue Promises?
Mar 14, 2026
They unpack Oracle’s blockbuster cloud growth and a massive $553B jump in remaining performance obligations. They dig into how heavy data center capex is pressuring free cash flow and EPS. They discuss ambitious guidance, a $90B near-term outlook, and a thesis that Oracle could approach $200B in revenue by 2028. They also cover a large debt raise and its balance sheet implications.
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RPO Surge Signals Large Future Cloud Revenue
- Oracle reported $553B in RPO, up 325% year over year, signaling massive contracted future revenue tied to cloud deals.
- Q3 cloud revenue was $8.9B with IaaS at $4.9B growing 84%, showing infrastructure is the fastest-growing segment.
CapEx Driving Slower EPS Growth
- Non-GAAP EPS grew slower on a constant-currency basis (16%) than headline revenue due to FX benefit and higher depreciation.
- Heavy data center CapEx raised depreciation, throttling adjusted EPS despite 22% overall revenue growth.
Watch Cloud Mix To Judge EPS Recovery
- Expect Oracle's EPS growth to accelerate as cloud revenue becomes a larger mix and offsets legacy software drag.
- Watch fiscal 2027 guidance and cloud mix to confirm the transition toward faster overall growth.