Oracle’s Cloud Boom Bolsters the Case for OGIG ETF

Oracle Corp. (ORCL) reported record fiscal fourth-quarter results on Wednesday, with cloud revenue jumping 47% to $9.9 billion, according to the company’s earnings release. The results highlight one of the largest holdings in the ALPS O’Shares Global Internet Giants ETF (OGIG).

Key Takeaways:

• Cloud revenue rose 47% to $9.9B in Oracle’s fiscal Q4, driven largely by infrastructure demand.
• The company is OGIG’s fourth-largest holding, making up 5.23% of the fund’s portfolio.
• Remaining performance obligations jumped 363% year-over-year to $638B, fueled by large AI contracts.

Overall, total revenue for the quarter rose 21% to $19.2 billion, according to Oracle. Cloud infrastructure revenue, the segment that rents out computing power for artificial intelligence (AI) projects, climbed 93% to $5.8 billion.

The numbers point to continued enterprise spending on cloud computing and AI infrastructure, a theme that runs through several of OGIG’s top holdings. Oracle made up 5.2% of the fund’s portfolio, the fourth-largest weighting behind Alphabet Inc. (GOOGL), Amazon.com, Inc. (AMZN), and Microsoft Corp. (MSFT), according to ETF Database.

That weighting reflects how OGIG is built. The fund tracks an index of large internet and technology companies that draw most of their revenue from e-commerce, cloud computing, and digital platforms. Additionally, the strategy targets companies showing above-average growth in this category, according to ETF Database. Oracle’s results this quarter line up with the kind of cloud demand that the strategy is meant to track.

See more: OGIG Surges 8.4% on Oracle, DoorDash Gains

Oracle’s order backlog, known as remaining performance obligations, also grew. That figure reached $638 billion, up 363% from a year earlier, according to the company.

A chunk of that backlog, $75 billion, comes from large AI contracts in which customers prepaid Oracle for graphics processing units or supplied the chips themselves, according to Oracle. That arrangement reduces how much capital Oracle needs to raise in order to build out its data centers.

Cloud Spending Fuels Growth Across the Sector

Oracle’s cloud applications business — software delivered over the internet rather than installed on company computers — grew 10% to $4.1 billion in the quarter, according to the company. The Oracle Multicloud AI Database, which lets customers run Oracle’s database technology across other cloud providers, grew 404% during the quarter.

Results like these highlight why Oracle holds a spot in OGIG. The fund targets companies that combine revenue growth with solid balance sheets and cash flow, according to ETF Database. OGIG carries a 0.48% expense ratio and holds $108.4 million in assets.

For fiscal 2027, Oracle raised its non-GAAP earnings per share guidance to $8.05 and confirmed a revenue target of $90 billion, according to the company. Oracle also said that it expects total cloud revenue to grow between 58% and 64% in the current quarter.

Beyond infrastructure, Oracle pointed to its healthcare business as a future growth driver. An AI-powered version of its Cerner patient care system is expected to push Oracle Health’s growth into double digits in fiscal 2027.

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VettaFi LLC (“VettaFi”) is the index provider for OGIG, for which it receives an index licensing fee. However, OGIG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of OGIG.

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