{"id":1237,"date":"2026-10-01T01:00:57","date_gmt":"2026-09-30T17:00:57","guid":{"rendered":"https:\/\/onemoremoney.com\/onemorestock\/oracle-orcl-stock-ai-cloud-backlog\/"},"modified":"2026-10-01T01:00:57","modified_gmt":"2026-09-30T17:00:57","slug":"oracle-orcl-stock-ai-cloud-backlog","status":"publish","type":"post","link":"https:\/\/onemoremoney.com\/onemorestock\/oracle-orcl-stock-ai-cloud-backlog\/","title":{"rendered":"Oracle (ORCL) Stock: A $664B AI Backlog and Who Pays for It"},"content":{"rendered":"\n

Oracle (ORCL) Stock: A $664B AI Backlog and Who Pays for It<\/h1>\n\n\n\n

Oracle stock presents one of the strangest pictures in large-cap technology today. On 10 September 2026 the company reported a record quarter: revenue up 30%, cloud infrastructure revenue up 121%, and a contracted backlog of $664 billion. That backlog is roughly nine times the revenue Oracle has booked over the past twelve months.<\/p>\n\n\n\n

Yet the shares closed at $137.79 on 29 September, about 57% below their 52-week high of $322.54. In the past three months Oracle has been downgraded to one notch above junk by S&P Global Ratings, has sold $20 billion of new stock, and has sent a force majeure notice on its largest planned data center campus. The market is not doubting that demand exists. It is doubting whether Oracle can afford to deliver it.<\/p>\n\n\n\n

This article works through both halves of that picture. It covers how Oracle turned its database franchise into a multicloud business, why AI labs rent capacity from Oracle Cloud Infrastructure (OCI), what the $664 billion of remaining performance obligations really represents, and what the bill for building it looks like. The aim is to help you judge whether Oracle is a durable AI infrastructure business at a discounted price, or a balance sheet that has run ahead of itself.<\/p>\n\n\n\n

1. Key Financial Metrics<\/h2>\n\n\n\n
Metric<\/th>Value<\/th><\/tr><\/thead>
Ticker<\/td>NYSE: ORCL<\/td><\/tr>
Share price<\/td>$137.79 (close, 29 September 2026)<\/td><\/tr>
Market capitalisation<\/td>About $417 billion<\/td><\/tr>
52-week range<\/td>$114.50 to $322.54<\/td><\/tr>
Revenue, trailing twelve months<\/td>$71.78 billion<\/td><\/tr>
Revenue, Q1 FY2027<\/td>$19.3 billion, up 30%<\/td><\/tr>
Cloud revenue, Q1 FY2027<\/td>$11.6 billion, up 62%<\/td><\/tr>
Cloud infrastructure (OCI) revenue, Q1 FY2027<\/td>$7.4 billion, up 121%<\/td><\/tr>
Remaining performance obligations (RPO)<\/td>$664 billion<\/td><\/tr>
Non-GAAP operating margin, Q1 FY2027<\/td>42%<\/td><\/tr>
Capital expenditure, Q1 FY2027<\/td>$28.5 billion<\/td><\/tr>
Free cash flow, Q1 FY2027<\/td>Negative $5.4 billion<\/td><\/tr>
Notes payable and borrowings<\/td>About $125 billion<\/td><\/tr>
Cash and equivalents<\/td>$36.4 billion<\/td><\/tr>
P\/E ratio, trailing<\/td>21.6<\/td><\/tr>
P\/E ratio, forward<\/td>16.2<\/td><\/tr>
Dividend<\/td>$0.50 per quarter, about 1.45% yield<\/td><\/tr>
Analyst consensus<\/td>Buy, 43 analysts<\/td><\/tr>
Average 12-month price target<\/td>$237.97<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Data as of 30 September 2026. Quarterly figures are for Oracle’s fiscal first quarter ended 31 August 2026. Verify before publishing.<\/em><\/p>\n\n\n\n

2. Company Overview: What Oracle Is Today<\/h2>\n\n\n\n

Oracle built its name on the relational database, the software that sits underneath payroll systems, bank ledgers, airline bookings and hospital records. For decades the business model was simple: sell a software licence, then collect an annual support fee. That legacy still exists, but it is no longer where the growth comes from.<\/p>\n\n\n\n

In fiscal 2026, which ended on 31 May 2026, Oracle reported $67.4 billion of revenue. Cloud revenue was $34.0 billion of that, up 39%. For the first time, cloud is now more than half the company, and in the latest quarter it reached 60% of revenue.<\/p>\n\n\n\n

The company reports four revenue lines, and their growth rates in the first quarter of fiscal 2027 tell the story clearly:<\/p>\n\n\n\n