Oracle Reveals $638B Cloud Backlog, $70B Capex, $156B Debt Amid Weaker Near-Term Guidance
ORCL sits 37% above its 52-week low of $134.57 on elevated volume (2.4× avg).
Summary
Oracle reported a massive $638 billion cloud backlog, with over half attributed to a multiyear OpenAI contract, signaling strong long-term revenue. However, the company also revealed plans for $70 billion in capital expenditures through FY2027 for AI data center buildouts, which has driven debt up 50% to $156 billion and resulted in negative free cash flow of $23.7 billion for FY2026. This follows record Q4 and FY2026 results, but the market reacted negatively to the higher capex and weaker near-term sales guidance, causing shares to drop. The significant investment and increased leverage raise concerns about near-term profitability and execution risks, despite the robust long-term cloud commitments.
At the time of this announcement, ORCL was trading at $184.29 on NYSE in the Technology sector, with a market capitalization of approximately $529.5B. The 52-week trading range was $134.57 to $345.72. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Wiseek News.