Oracle Just Revealed a Massive $638 Billion Backlog. Here's Why the Stock Fell Anyway.
The cloud giant's record quarter came with a reminder of just how expensive its artificial intelligence build-out has become.
Oracle Just Revealed a Massive $638 Billion Backlog. Here's Why the Stock Fell Anyway.
Overview
Oracle (NYSE: ORCL) reported its results for the fiscal fourth quarter of 2026 (the period ended May 31) after the market closed on Wednesday, and by most measures, the report was excellent. Revenue rose 21% year over year to $19.2 billion, and the company's backlog of contracted future revenue swelled to a record $638 billion. Management also stood by its forecast for revenue to reach $90 billion in fiscal 2027 -- growth of about 34%. Yet shares of the cloud and database giant slipped about 7% in after-hours trading as of this writing.
So why would investors sell on numbers like these?
Details
Part of the market's concern seems to center on what all of this growth costs. Oracle said it plans to raise about $40 billion in fiscal 2027 to help fund its artificial intelligence (AI) data center build-out -- on top of the $48 billion of debt and equity it raised in fiscal 2026.
Source
Originally published at www.fool.com.
