Oracle Has $638 Billion of Contracted Backlog and a $430 Billion Stock
The database giant's contracted future revenue now exceeds the company's entire market value. That gap is a message from investors.
Overview
Here are two numbers that shouldn't normally sit next to each other. Oracle (NYSE:ORCL) ended fiscal 2026 with $638 billion of remaining performance obligations, which is contracted work its customers have signed up for that hasn't yet become revenue. The company's market value, meanwhile, is about $430 billion, with the stock near $150 as of this writing -- down about 57% from its high of $345.72.
In other words, Oracle's stock is worth roughly $200 billion less than the revenue its customers have already contracted to hand over. And even adding the company's roughly $98 billion of net debt to the price, the market values the whole business about $110 billion short of the backlog.
Details
When Oracle revealed the $638 billion figure in June, alongside its fiscal 2026 fourth-quarter results (the fiscal year ended May 31), the company's market value stood near $580 billion. The stock has slid since, and the gap has only widened.
Source
Originally published at www.fool.com.