04:56 PM EDT, 09/09/2025 (MT Newswires) -- Oracle's (ORCL) fiscal first-quarter results missed Wall Street's estimates, while the cloud computing company said that its contract backlog will likely exceed half a trillion dollars due to strong demand over the coming months.

Adjusted earnings per share rose to $1.47 for the three months through Aug. 31 from $1.39 a year earlier, but trailed the FactSet-polled consensus of $1.48. Revenue increased 12% to $14.93 billion, below analysts' $15.04 billion estimate.

Cloud sales advanced 28% to $7.19 billion, while the software segment fell 1% to $5.72 billion. Oracle's remaining performance obligations -- future commitments arising from contractual relationships -- soared 359% to $455 billion.

"We signed four multi-billion-dollar contracts with three different customers in (the first quarter)," Chief Executive Safra Catz said in a statement. "Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars."

Shares advanced 21% in after-hours trading on Tuesday.

Oracle cloud infrastructure revenue is expected to grow 77% to $18 billion this year, and reach $144 billion by end of a four-year period starting 2027, Catz said.

Multi-cloud database revenue from Amazon ( AMZN ) , Google ( GOOG ) and Microsoft ( MSFT ) rallied by 1,529% in the first quarter, Oracle Chairman Larry Ellison said.

"We expect multicloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three hyperscaler partners, for a total of 71," Ellison said.

Oracle said in June that it clinched a cloud services agreement that was expected to boost annual revenue by more than $30 billion starting in fiscal 2028. That agreement is presumed to be with Microsoft ( MSFT )-backed OpenAl, RBC Capital Markets said in a note emailed Tuesday morning.

Oracle and OpenAI in July agreed to develop 4.5 gigawatts of additional Stargate data center capacity in the US. The initial equity funders in Stargate, which intends to invest $500 billion over the next four years in new AI infrastructure, are OpenAI, Oracle, MGX and Japan's SoftBank.

The company previously indicated that Stargate would not be included in its near-term outlook, "so we do not expect material revenue contribution this quarter," RBC analyst Rishi Jaluria said ahead of the earnings release.

"The stock reaction will hinge on clarity around incremental contribution from the presumed OpenAI deal, Stargate timing, and (Oracle cloud infrastructure) growth and profitability," Jaluria said. "With expectations already high, incremental disclosures in these areas will be the key catalysts."