I Keep Buying Oracle Because It Will Become a Tier-1 Hyperscaler

Oracle's $638 billion RPO, up 363% year-over-year, reflects customers paying upfront to fund AI infrastructure with returns in the high 20s. ORCL trades at a forward P/E of 19 and PEG of 0.851, offering cheaper growth exposure than MSFT despite accelerating 93% IaaS revenue growth. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) I keep hitting the buy button on Oracle (NYSE:ORCL) because I think the market is still pricing it as a legacy database company while it quietly builds itself into a Tier-1 hyperscaler.

I only need it to keep doing what it is already doing: acting as the high-performance engine for AI compute and the enterprise data backend that runs inside every rival cloud. If it executes the physical data center buildout and converts its backlog into operational cash flow, Tier-1 inclusion is only a matter of time. Start with Remaining Performance Obligations.

Oracle closed Q4 FY2026 with $638 billion in RPO, up 363% year over year. That is contracted, committed revenue. Four customers each signed for more than $8 billion in Q4 alone, and Oracle inked $67 billion in AI infrastructure contracts in the quarter.

Of that pipeline, $75 billion is structured as bring-your-own-hardware or customer-prepaid, which shifts capital risk off Oracle's balance sheet while preserving margin. CFO Hilary Maxson told the call the return on invested capital on that model sits in the high 20s at steady state. That is infrastructure economics I can underwrite.

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Cloud infrastructure revenue accelerated every quarter of FY2026: 55%, 68%, 84%, and 93%. Total cloud revenue in Q4 hit $9.913 billion, 52% of total sales. Multicloud AI database, which lets Oracle databases run inside AWS, Google Cloud, and Azure, grew 404% in Q4.