1、M UpdateOracle Corporation|North America1Q26 Results Tectonic Shift in Business ModelAn extraordinary$332 billion in bookings in Oracles Q1 represents not only the biggest bookings number weve ever seen in software,but a fundamental shift in the business model towards Data Center Operator.Despite gr

2、oss margin headwinds,out-year EPS targets are likely to move materially higher.The Only Number That Matters?After talking to a doubling of the remaining performance obligation(RPO)balance on the Q4 call and an 8K suggesting a contract annualizing at$30 billion by 2028 released intra-quarter,the inve

3、stor debate coming into the Q1 print centered around whether Oracle could add$100 billion in RPO in the quarter the company reported an extraordinary addition of$316 billion in RPO in the quarter,suggesting$332 billion in bookings in the quarter.While the reported metrics in the quarter itself were

4、not impressive,having actually missed revenues,were light on Oracle Cloud Infrastructure(OCI)again,saw a slight deceleration in strategic application growth and a higher tax rate pushed EPS below consensus none of that matters.The fundamental business at Oracle is quickly shifting toward GPU Data Ce

5、nter Operator,with the company taking a commanding lead in that market with these contract additions.While detail on the contracts were sparse,management did talk to signing four multi-billion contracts in the quarter with three different customers.On the callback,Oracle IR intimated contract length

6、s could be up to 10 years in duration,suggesting the$30 billion annualized contract talked about in the 8K could represent the lions share of the$332 billion in bookings in the quarter.Oracle management went on to give discrete OCI targets for FY26 at$18 billion,increasing to$32 billion(FY27),$73 bi