The Good:

Net Income of $6.135 billion, up 38% YoY

Remaining Performance Obligations up to $523 billion, crazy if actually realized

Clear Path for Revenue Growth

The Bad:

$2.668 billion of net income was related to sale of Amphere and the declaration that Oracle will not produce chips and just buy "what customers want"

EPS would have been ~$1.33 without the gain on sale of Amphere ste

Remaining Performance Obligations (RPO) growth outpaced revenue growth and is highly sensitive to cancelation risk

The Ugly:

Free Cash Flow is Tanking [ $11.27b, $9.54B, $5.81, ($0.394), ($5.88), ($13,181), ] With no sign of reversing

Current Liabilities > Current Assets ($37.795b vs $34.366b), when FCF is tanking

Their actual Software Business shrank compared to last year (software license revenue down 21%)

The Takeaway:

This was not a strong report and $ORCL is heavily exposed if one believes in "AI Bubble" theories

No position, Would buy at 20x forward earnings, so ~$150 per share. NFA