Oracle’s spending plans overshadow record backlog
Key takeaways
- The stock dropped despite beats on revenue and earnings.
- Remaining performance obligations reached $638 billion, up 363% year over year and $85 billion above the prior quarter, well ahead of the Street s $595.7 billion estimate.
- Softness in cloud applications tempered the picture.
Oracle’s spending plans overshadow record backlog Proactive Thu, June 11, 2026 at 11:10 PM GMT+7 3 min read ORCL ORCL-PD Oracle Corp (NYSE:ORCL, XETRA:ORC) shares fell around 12% on Thursday after quarterly results drew investor scrutiny over the company s aggressive capital spending plans, even as a record backlog and strong cloud infrastructure growth pointed to durable demand for its AI buildout.
The stock dropped despite beats on revenue and earnings. Total revenue rose 21% year over year to $19.18 billion, edging past the Street s $19.1 billion estimate, while non-GAAP EPS of $2.11 topped consensus of around $1.97. Operating margin of 44.8% also cleared expectations.
The headline that overshadowed those results: Oracle said it expects to raise roughly $40 billion through debt and equity in fiscal 2027, including a $20 billion at-the-market equity program, as it races to build out AI data center capacity at scale. Reported capital expenditures for the year are guided at $90 billion to $95 billion, with net cash outlays of approximately $70 billion after accounting for $20 billion to $25 billion in customer prepayments and bring-your-own-hardware arrangements.