1、Barclays Capital Inc.and/or one of its affiliates does and seeks to do business with companiescovered in its research reports.As a result,investors should be aware that the firm may have aconflict of interest that could affect the objectivity of this report.Investors should consider thisreport as on

2、ly a single factor in making their investment decision.Please see analyst certifications and important disclosures beginning on page 9.Oracle Corp.A Transformational QuarterAs we had previewed,Q1 in itself was the typical smallquarter.However,this does not matter as the large AIcontracts Oracle sign

3、ed this quarter($317bn of additionalRPO)fundamentally changes the P&L trajectory in the yearsto come.We continue to see ORCL as an AI winner.We see ongoing positive momentum for ORCL post this quarter.The new RPO balance of$455bn,up$317bn from last quarter,shows that the company will see strong reve

4、nuemomentum for the years to come from simply just delivering on these new large AI contracts.We had tried to model the upside in our preview(Oracle Corp.:Q1 Preview:Expecting A VeryDifferent Q1,9/8/25)but have to admit that the actual numbers are likely higher as just the newOCI revenue target($114

5、bn in FY2029)is already above the old total revenue target($104bn inFY29),which had been communicated at the Analyst Day last October.We still sense that manyinvestors are not fully aligned with the notion that ORCL will be a main AI beneficiary and hence,expect ongoing upside momentum for the name.

6、We are raising our price target to$347 andmaintain our Overweight rating.The Numbers:RPO of$455bn grew 360%y/y($317bn q/q add)and sharply beat consensusexpectations of$149bn.Oracle reported 12.2%y/y revenue growth(vs.12.9%consensus),or11%ccy(vs.cons 12.9%in ccy and 11-13%ccy guidance).Cloud services