Wall Street Breakfast Podcast: Oracle Surges on future deals

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Oracle (ORCL) jumps as surge in remaining performance obligations overshadows Q1 miss. (00:23) Klarna (KLAR) prices IPO above range at $40 a share, valuing it at $15B. (01:37) Federal judge rules Fed Governor Lisa Cook can stay — for now. (02:36)

This is an abridged transcript.

Oracle (NYSE:ORCL) is 29% higher in premarket trading.

The IT giant reported a massive surge in remaining performance obligations that overshadowed weaker-than-expected fiscal first-quarter results.

For the period ending Aug. 31, Oracle (ORCL) earned an adjusted $1.47 per share on $14.93B in revenue. Analysts expected the company to earn $1.48 per share on $15.03B in revenue.

Overshadowing the results was a massive 359% surge in total remaining performance obligations during the period to $455B.

“We signed four multi-billion-dollar contracts with three different customers in Q1,” said Oracle CEO, Safra Catz. “This resulted in RPO contract backlog increasing 359% to $455 billion.”

He went on to say, “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.”

Oracle Chairman and CTO Larry Ellison said multi-cloud database revenue from Amazon (AMZN), Google (GOOG) (GOOGL), and Microsoft (MSFT) grew at 1,529% in the period.

Klarna (KLAR) has priced its initial public offering at $40 per share, well above its expected range of $35-$37 a share.

This values the buy now, pay later financing firm at $15.1B.

However, $15.1B is still well below Klarna’s (KLAR) peak valuation of over $45B back in 2021, when the service grew in popularity during the COVID-19 pandemic.

The company and some of its existing investors sold around 34.3M shares, raising $1.37B in its U.S. IPO. Its shares are expected to start trading on the New York Stock Exchange today under the ticker “KLAR”.

Klarna’s (KLAR) revenue has grown over the years, but that has weighed on profitability.

Its closest rival Affirm (AFRM) went public in 2021 at a $12B valuation. Its market cap currently stands at $28.79B.

Federal Reserve Governor Lisa Cook can remain in her position for now.

A federal judge issued the ruling late Tuesday night, temporarily blocking President Trump’s effort to remove her.

Trump said he fired Cook “for cause” because of allegations she committed mortgage fraud. In late August, Cook responded by suing the Trump administration to stop this from happening.

“At this preliminary stage, the Court finds that Cook has made a strong showing that her purported removal was done in violation of the Federal Reserve Act’s ‘for cause’ provision,” Judge Jia Cobb wrote in her decision, The Washington Post reported.

The preliminary injunction issued by Cobb means that Cook will be able to participate in next week’s Fed Reserve Board policy meeting.

What’s Trending on Seeking Alpha:

Novo Nordisk to cut 9,000 jobs in $1.25 billion overhaul, trims 2025 profit outlook

Taiwan Semiconductor’s August sales rise 34% as AI demand stays strong

Trump administration moves to regulate pharmaceutical ads on TV and social media

Catalyst watch:

• Tapestry (TPR) will hold its Investor Day. The event will highlight the company’s long-term strategic growth initiatives and financial outlook, featuring a series of presentations as well as a question and answer session with members of the senior leadership team.

• Shareholders with TaskUs (TASK) will vote on the Blackstone (BX) acquisition offer.

Dow, S&P and Nasdaq futures are in mixed territory. Crude oil is up 0.9% at $63/barrel. Bitcoin is up 0.8% at $112,000. Gold is up 0.5% at $3,646.

The FTSE 100 is flat and the DAX is also flat.

The biggest movers for the day premarket: Asset Entities (NASDAQ:ASST) +140% – Shares more than doubled after shareholders approved its merger with Strive Enterprises, following Strive’s approval on September 4, 2025.

On today’s economic calendar: