Oracle cloud surge, $638B backlog boost OGIG holding

Oracle reported fiscal fourth-quarter results on Wednesday, with cloud revenue up 47% to $9.9 billion and remaining performance obligations reaching $638 billion. Those figures relate to the company’s roughly 5.23% weighting in the ALPS O’Shares Global Internet Giants ETF (OGIG).

Total revenue for the quarter increased 21% to $19.2 billion. Oracle’s cloud infrastructure business, which rents computing power for artificial intelligence workloads, grew 93% to $5.8 billion. Cloud applications revenue rose 10% to $4.1 billion, and the Oracle Multicloud AI Database product recorded a 404% increase for the quarter.

Remaining performance obligations rose 363% year over year to $638 billion. About $75 billion of that backlog stems from large AI contracts in which customers prepaid for graphics processing units or supplied their own chips. Oracle reported that those prepaid arrangements reduce how much capital the company needs to raise to expand data center capacity.

For fiscal 2027 Oracle raised its non-GAAP earnings-per-share outlook to $8.05 and confirmed a revenue target of $90 billion. The company guided cloud revenue growth of 58% to 64% for the current quarter.

Oracle is the fund’s fourth-largest holding, behind Alphabet, Amazon and Microsoft, and represents about 5.23% of OGIG. The ETF tracks large internet and technology companies whose primary revenue comes from e-commerce, cloud computing and digital platforms. The fund carries a 0.48% expense ratio and reported $108.4 million in assets.

Oracle highlighted its healthcare unit as a growth area. An AI-enhanced version of its Cerner patient care system is expected to generate double-digit growth for Oracle Health in fiscal 2027.

The company noted the backlog represents contracted customer demand over multiple quarters and that the structure of prepaid AI contracts affects near-term capital requirements for building additional capacity.