Key Highlights
- Dell’s fiscal 2026 revenue reached $113.5B with 19% growth, supported by a massive $43B AI server backlog
- Oracle saw cloud revenue surge 44% while remaining performance obligations soared 325% to $553B
- Nebius achieved explosive 479% revenue growth to $529.8M and projects $7B–$9B in annual recurring revenue by late 2026
- Palantir delivered $4.475B in fiscal 2025 revenue with 56% year-over-year growth and 50% operating margins
- While all four demonstrate robust AI-driven expansion, their market valuations present markedly different risk-reward scenarios
Dell’s fiscal 2026 performance showed total revenue climbing to $113.5 billion, marking a 19% increase year-over-year. The Infrastructure Solutions Group segment delivered particularly impressive results with 40% growth during the same timeframe.
Throughout the fiscal year, Dell secured over $64 billion worth of AI-optimized server contracts from customers. The company entered the new fiscal year carrying a $43 billion backlog specifically in AI servers, positioning it among the industry’s top players in this category.
Operating income for the period totaled $8.1 billion, reflecting 31% growth. This expansion occurred while Dell ramped up production to fulfill substantial enterprise orders across its customer base.
Interestingly, market pricing for Dell shares frequently reflects traditional hardware company multiples rather than recognizing its evolving role as an AI infrastructure provider. Several market observers suggest this valuation disconnect may present opportunities for investors willing to look beyond surface classifications.
Oracle’s Cloud Momentum and Contracted Revenue Pipeline
Oracle’s fiscal third quarter of 2026 generated $17.2 billion in revenue, representing 22% growth. The cloud segment expanded 44%, while Oracle Cloud Infrastructure specifically accelerated 84% year-over-year.
Remaining performance obligations — essentially revenue already contracted but not yet recognized — climbed to $553 billion, a remarkable 325% annual increase. This metric indicates Oracle has secured a substantial queue of committed customer spending extending well into future quarters.
The company preserved a 43% non-GAAP operating margin during the quarter despite significant capital expenditures directed toward expanding AI cloud infrastructure capabilities.
A noteworthy shift has been Oracle’s broadening customer base beyond traditional government contracts toward commercial enterprises. This diversification has gradually reshaped market perception away from viewing Oracle purely as a legacy database vendor.
Nebius and Palantir: Contrasting Profiles in High-Growth AI
Nebius finished 2025 with annual revenue of $529.8 million, representing staggering 479% growth compared to 2024. Annual recurring revenue closed the year at $1.25 billion.
The company achieved positive adjusted EBITDA for the first time in Q4 2025. Its balance sheet showed $3.7 billion in cash reserves at year-end.
Management’s forward guidance calls for annual recurring revenue between $7 billion and $9 billion by the conclusion of 2026. This aggressive growth projection has attracted attention from investors seeking higher-risk, higher-reward opportunities in AI infrastructure.
Palantir closed fiscal 2025 with revenue totaling $4.475 billion, representing 56% annual growth. The company’s outlook projects approximately $7.19 billion in revenue for fiscal 2026.
Adjusted operating margins for the full year reached an impressive 50%. Deal flow hit record levels, driven by continued strength in both government and commercial client segments.
Palantir’s current market valuation already incorporates substantial growth expectations. It commands premium multiples relative to Dell and Oracle, which some analysts argue reduces margin of safety should execution falter.
Bottom Line
Each of these four companies demonstrates genuine momentum backed by tangible AI infrastructure demand. The critical distinction lies in valuation — what premium you’re accepting for anticipated growth. Dell and Oracle present more conservative entry points with solid fundamentals, Nebius offers asymmetric upside paired with elevated execution risk, while Palantir operates as a high-quality business potentially trading ahead of reasonable growth assumptions.
