Meta, Nvidia and the Other Large BuyersNarrow moat

Oracle (ORCL) — moat facet

Oracle has named Meta and Nvidia among its big buyers and says $65 billion came from customers other than OpenAI in a single month.

Oracle has worked to show the backlog is broader than one customer. In October 2025 its co-chief executive said the company had signed $65 billion of new cloud infrastructure commitments in 30 days, "across seven different contracts from four different customers", and that "None of those customers are OpenAI"1. Meta was confirmed as one of the four2.

Increase in remaining performance obligations by quarter ($bn)317Q1 FY2668Q2 FY2630Q3 FY2685Q4 FY2626Q1 FY27Oracle Q4 FY2025 to Q1 FY2027 results releases; calculated
One huge quarter, then smaller steps.

Other names appear in Oracle's own releases. The $68 billion added to remaining performance obligations in the second quarter of fiscal 2026 was "highlighted by new commitments from Meta, NVIDIA, and others"3. In the first quarter of fiscal 2026 Oracle said it had signed four multi-billion-dollar contracts with three different customers4.

The pattern is a small number of very large buyers. The remaining performance obligations rose from $455 billion in August 2025 to $523 billion in November, $553 billion in February 2026, $638 billion in May and $664 billion in August56789. The latest quarter added about $26 billion10.

Meta and Nvidia are public companies with large businesses of their own, which makes their commitments easier to judge than a start-up's. They are also the companies most able to build their own capacity once they have the power and the buildings.

Oracle has also found a new kind of partner in TikTok. It holds a 15% interest in TikTok USDS Joint Venture LLC, accounted for as an equity method investment11. Oracle's filings describe the ownership, not any commercial terms, so the stake shows how widely Oracle is placing bets rather than a contract it can count on.

A broader backlog is a safer one. The number to watch is the quarterly increase in remaining performance obligations: a run of quarters adding $25 billion or more from customers other than OpenAI would say the concentration is falling, while growth that stalls would say the other buyers are building for themselves.

Moat trajectory: Widening

New large customers adding to RPO each quarter.

The number that tests this moat
Moat Explorer calc
Sequential increase in remaining performance obligations, latest quarter
About $26bn (to $664bn, Aug 2026)

New large commitments each quarter; a stall would mean the other buyers are building their own capacity.

How it's calculated: RPO of $664bn at 31 August 2026 less $638bn at 31 May 2026, from Oracle's results releases.
Source: Moat Explorer calculation from Oracle filings ↗
References
  1. ReportedIn October 2025 its co-chief executive said the company had signed $65 billion of new cloud infrastructure commitments in 30 days, "across seven different contracts from four different customers", and that "None of those customers are OpenAI".
    CNBC, Oracle confirms Meta cloud deal; fiscal 2030 targets of $225 billion revenue and $21 EPS; AI infrastructure margins and AI database targets. — October 2025 · publ. 16 October 2025 · source ↗
  2. ReportedMeta was confirmed as one of the four.
    CNBC, Oracle confirms Meta cloud deal; fiscal 2030 targets of $225 billion revenue and $21 EPS; AI infrastructure margins and AI database targets. — October 2025 · publ. 16 October 2025 · source ↗
  3. ReportedThe $68 billion added to remaining performance obligations in the second quarter of fiscal 2026 was "highlighted by new commitments from Meta, NVIDIA, and others".
    Oracle second-quarter fiscal 2026 results release, Form 8-K exhibit 99.1 - multicloud datacenters, regions, chip neutrality and new commitments from Meta and NVIDIA. — Q2 FY2026 · publ. 10 December 2025 · source ↗
  4. ReportedIn the first quarter of fiscal 2026 Oracle said it had signed four multi-billion-dollar contracts with three different customers.
    Oracle first-quarter fiscal 2026 results release, Form 8-K exhibit 99.1 - the OCI revenue plan and four multi-billion-dollar contracts. — Q1 FY2026 · publ. 9 September 2025 · source ↗
  5. ReportedThe remaining performance obligations rose from $455 billion in August 2025 to $523 billion in November, $553 billion in February 2026, $638 billion in May and $664 billion in August.
    Oracle first-quarter fiscal 2026 results release, Form 8-K exhibit 99.1 - the OCI revenue plan and four multi-billion-dollar contracts. — Q1 FY2026 · publ. 9 September 2025 · source ↗
  6. ReportedThe remaining performance obligations rose from $455 billion in August 2025 to $523 billion in November, $553 billion in February 2026, $638 billion in May and $664 billion in August.
    Oracle second-quarter fiscal 2026 results release, Form 8-K exhibit 99.1 - multicloud datacenters, regions, chip neutrality and new commitments from Meta and NVIDIA. — Q2 FY2026 · publ. 10 December 2025 · source ↗
  7. ReportedThe remaining performance obligations rose from $455 billion in August 2025 to $523 billion in November, $553 billion in February 2026, $638 billion in May and $664 billion in August.
    Oracle third-quarter fiscal 2026 results release, Form 8-K exhibit 99.1 - AI code generation and customer-funded equipment. — Q3 FY2026 · publ. 10 March 2026 · source ↗
  8. ReportedThe remaining performance obligations rose from $455 billion in August 2025 to $523 billion in November, $553 billion in February 2026, $638 billion in May and $664 billion in August.
    Oracle fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - financing, $75 billion of prepaid and customer-supplied hardware, Oracle Health and multicloud. — FY2026 · publ. 10 June 2026 · source ↗
  9. ReportedThe remaining performance obligations rose from $455 billion in August 2025 to $523 billion in November, $553 billion in February 2026, $638 billion in May and $664 billion in August.
    Oracle first-quarter fiscal 2027 results release, Form 8-K exhibit 99.1, with supplemental tables - income statement, cash flow statement and balance sheet. — Q1 FY2027 · publ. 10 September 2026 · source ↗
  10. Moat Explorer calcThe latest quarter added about $26 billion.
    Moat Explorer calculation from Oracle's reported figures ($ millions unless stated; fiscal years end 31 May). Revenue lines: software support 19,804 / 19,365 - 1 = 2.3% (FY2022-FY2026); support share 19,804 / 67,357 = 29.4%; support Q1 FY2027 4,895 / 4,955 - 1 = -1.2%; licences FY2026 4,737 / 5,201 - 1 = -8.9%; licences Q1 FY2027 655 / 766 - 1 = -14.5%; licences FY2017 to FY2026 4,737 / 6,523 - 1 = -27.4%; fourth-quarter licences 1,881 / 4,737 = 39.7%. Software (licence plus support) FY2022 5,878 + 19,365 = 25,243; FY2023 5,779 + 19,426 = 25,205; FY2026 24,541 / 24,724 - 1 = -0.7%; software share 24,541 / 67,357 = 36.4%. Cloud infrastructure FY2026 18,101 / 10,234 - 1 = 76.9%; FY2024 to FY2026 18,101 / 6,840 = 2.6 times; share 18,101 / 67,357 = 26.9%; Q1 FY2027 share 7,388 / 19,345 = 38.2%; annual run rate 7,388 x 4 = 29,552. Cloud applications FY2025 14,272 / 12,934 - 1 = 10.3%; FY2026 15,888 / 14,272 - 1 = 11.3%; share 15,888 / 67,357 = 23.6%; trailing twelve months 15,888 - 3,839 + 4,219 = 16,268. Applications ecosystem revenue 18,172 / 16,651 - 1 = 9.1%; 19,383 / 18,172 - 1 = 6.7%. Hardware segment margin 2,017 / 3,084 = 65.4% (FY2026); 1,709 / 4,152 = 41.2% (FY2017); 1,903 / 3,443 = 55.3% (FY2020); 1,932 / 3,274 = 59.0% (FY2023); 452 / 774 = 58.4% (Q1 FY2027); hardware revenue 3,084 / 4,152 - 1 = -25.7%; 3,084 / 5,205 - 1 = -40.7%; share 3,084 / 67,357 = 4.6%. Services margin 1,533 / 5,743 = 26.7% (FY2026); 993 / 5,233 = 19.0% (FY2025); 698 / 3,359 = 20.8% (FY2017); 450 / 3,106 = 14.5% (FY2020); 1,104 / 5,594 = 19.7% (FY2023); 445 / 1,414 = 31.5% (Q1 FY2027); services growth 5,743 / 5,233 - 1 = 9.7%; share 5,743 / 67,357 = 8.5%; revenue per services employee 5,743 / 34,000 = about $169,000. Cloud and software segment margin 20,801 / 30,452 = 68.3% (FY2017); 23,169 / 34,101 = 67.9% (FY2021); 26,126 / 41,086 = 63.6% (FY2023); 28,514 / 44,464 = 64.1% (FY2024); 30,930 / 49,230 = 62.8% (FY2025); 34,468 / 58,530 = 58.9% (FY2026); 7,691 / 12,907 = 59.6% (Q1 FY2026); 9,358 / 17,157 = 54.5% (Q1 FY2027); segment expenses 16,850 / 8,783 - 1 = 91.8%; segment revenue 58,530 / 44,464 - 1 = 31.6%; Q1 segment revenue 17,157 / 12,907 - 1 = 32.9%. Revenue growth 67,357 / 57,399 - 1 = 17.3%; FY2022 to FY2026 67,357 / 42,440 - 1 = 58.7%; Cerner share of FY2023 revenue 5,900 / 49,954 = 11.8%. Research and development 10,272 / 5,524 = 1.9 times; 10,272 / 67,357 = 15.3%. Sales and marketing 8,274 / 52,961 = 15.6% (FY2024); 8,651 / 57,399 = 15.1% (FY2025); 8,331 / 67,357 = 12.4% (FY2026); 8,331 / 8,651 - 1 = -3.7%; revenue per dollar of selling 52,961 / 8,274 = 6.4 and 67,357 / 8,331 = 8.1. Operating margin 15,353 / 52,961 = 29.0%; 17,678 / 57,399 = 30.8%; 20,606 / 67,357 = 30.6%; before amortisation (15,353 + 3,010) / 52,961 = 34.7%, (17,678 + 2,307) / 57,399 = 34.8%, (20,606 + 1,671) / 67,357 = 33.1%; amortisation 1,671 / 67,357 = 2.5%; non-GAAP less GAAP operating income 28.9 - 20.6 = 8.3 bn. Headcount 162,000 - 141,000 = 21,000, 21,000 / 162,000 = 13%. Headcount against the fiscal 2023 peak 164,000 - 141,000 = 23,000. Hardware FY2015 to FY2026 3,084 / 5,205 - 1 = -40.7%. Amortisation Q1 420 - 202 = 218. Stock compensation plus restructuring FY2026 4,811 + 1,838 = 6,649. Americas 44,478 / 36,339 - 1 = 22.4%; Americas share 23,679 / 42,440 = 55.8% (FY2022), 33,122 / 52,961 = 62.5% (FY2024), 44,478 / 67,357 = 66.0% (FY2026), 13,711 / 19,345 = 70.9% (Q1 FY2027); Asia Pacific 7,582 / 6,750 - 1 = 12.3%; EMEA plus Asia Pacific Q1 FY2027 3,726 + 1,908 = 5,634. US long-lived assets 102,717 / 45,439 = 2.3 times. Free cash flow FY2025 20,821 - 21,215 = -394; FY2024 18,673 - 6,866 = 11,807. Capital expenditure share of revenue 6,866 / 52,961 = 13%; 21,215 / 57,399 = 37%; 55,663 / 67,357 = 83%; 28,499 / 19,345 = 147%. Property added 127,845 - 99,957 = 27,888. Q1 FY2027 operating cash flow excluding prepayments 23,103 - 11,363 = 11,740; prepayments share 11,363 / 23,103 = 49%; free cash flow excluding prepayments -5,396 - 11,363 = -16,759. Borrowings 130,105 / 87,202 - 1 = 49%; net debt May 2025 92,568 - 10,786 - 417 = 81,365; May 2026 129,541 - 31,289 - 605 = 97,647; August 2026 7,625 + 117,712 - 36,369 - 708 = 88,260. Interest 1,428 / 923 - 1 = 55%; interest over operating income 1,428 / 6,728 = 21%. Leases not yet commenced over borrowings 288 / 125.3 = 2.3 times; over total assets 288 / 303.3 = 95%. Depreciation 3,156 / 1,351 = 2.3 times. Diluted shares 3,000 / 2,823 - 1 = 6.3%, 3,000 - 2,823 = 177 million; Ellison 1,158.2 / 3,023.7 = 38.3%; pledged 346 / 1,158 = 30%. Remaining performance obligations: 664 / 138 = 4.8 times; 664 / 455 - 1 = 46%; next twelve months 12% x 638 = 77 bn and 13% x 664 = 86 bn; beyond 36 months 100% - 13% - 37% = 50%; quarterly increases 455 - 138 = 317, 523 - 455 = 68, 553 - 523 = 30, 638 - 553 = 85, 664 - 638 = 26. Targets: 225 / 67.357 = 3.3 times; 225 - 24.5 = about 200 bn; 144 / 18 = 8 times; 20 / 2.4 = 8.3 times; Q1 FY2027 revenue 19,345 / 90,000 = 21.5% of guidance. Other: total assets 303,259 - 261,759 = 41,500 in one quarter; revenue FY2026 against FY2023 67,357 / 49,954 - 1 = 34.8%; cloud infrastructure Q1 FY2027 over Q4 FY2026 7,388 - 5,787 = 1,601; quarterly steps 4,079 - 3,347 = 732, 4,888 - 4,079 = 809, 5,787 - 4,888 = 899; cloud applications share 3,839 / 14,926 = 25.7% (Q1 FY2026) and 4,219 / 19,345 = 21.8% (Q1 FY2027); dividends over support 5,787 / 19,804 = 29.2%; interest, research and dividends 4,599 + 10,272 + 5,787 = 20,658; support FY2015 to FY2026 19,804 - 18,847 = 957; US revenue share 39,835 / 67,357 = 59.1%. Trailing twelve months to August 2026: revenue 67,357 - 14,926 + 19,345 = 71,776; net income 17,087 - 2,927 + 4,760 = 18,920; diluted EPS 5.83 - 1.01 + 1.56 = 6.38; P/E 421,930 / 18,920 = 22.3; P/S 421,930 / 71,776 = 5.88 - growth rates, segment margins and line totals. — FY2015-Q1 FY2027 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Oracle's Forms 10-K and 10-Q, results releases and market data; operands shown in the source line.
  11. ReportedIt holds a 15% interest in TikTok USDS Joint Venture LLC, accounted for as an equity method investment.
    Oracle Form 10-Q for the quarter ended 31 August 2026 - segments, leases not yet commenced, the ATM share programme, RPO timing and shares outstanding. — Q1 FY2027 · publ. 11 September 2026 · source ↗
Sources
Generated September 25, 2026