Oracle's Backlog Surges 325% Year Over Year
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy ORCL?
Source: NASDAQ.COM
- Backlog Surge: Oracle's Remaining Performance Obligations (RPO) reached $553 billion in Q3 of fiscal 2026, reflecting a staggering 325% year-over-year increase, indicating strong revenue visibility and justifying ongoing capital expenditures for future growth.
- Significant Revenue Growth: The company's overall revenue rose 22% year-over-year, with the cloud infrastructure segment experiencing an impressive 84% increase, nearing $5 billion, showcasing Oracle's robust demand and competitive positioning in the cloud market.
- Stock Price Opportunity: Despite Oracle's stock plummeting over 57% from its all-time high in September 2025 to around $138, this presents a buying opportunity for patient investors, with a forward P/E ratio now at approximately 18, suggesting a more reasonable valuation.
- Optimistic Future Outlook: Oracle reaffirmed its fiscal 2026 guidance while raising expectations for 2027, projecting revenues could reach $90 billion, demonstrating the company's confidence in long-term growth despite current market volatility.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ORCL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 138.090
Low
180.00
Averages
309.59
High
400.00
Current: 138.090
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oracle Stock Faces Short Selling Pressure
- Significant Short Pressure: According to Hazeltree's report, Oracle has become one of the most shorted large-cap stocks in North America, with its stock price down approximately 29% year-to-date, reflecting market concerns over its high valuation and substantial debt, particularly amid escalating geopolitical tensions.
- Strong Earnings Report: Despite Oracle achieving a 24% year-over-year increase in earnings and a 22% rise in revenue in its latest quarterly report, along with a 44% surge in cloud revenue, the stock price failed to rebound significantly, indicating market caution regarding its future growth prospects.
- Massive Remaining Performance Obligations: Oracle's remaining performance obligations (RPO) stand at a staggering $553 billion, up 325% year-over-year; however, $300 billion of this is tied to a deal with OpenAI, raising investor concerns about the realization of these obligations, which could impact future cash flow.
- Heavy Debt Burden: With total debt around $162 billion and a debt-to-equity ratio of 415%, Oracle anticipates a 17% revenue growth, but much of this revenue will be allocated to debt repayment, potentially exerting pressure on earnings.
See More
OpenAI Partners with Amazon to Expand Enterprise Market Share
- Strategic Partnership Highlight: OpenAI's revenue chief Denise Dresser emphasized in a memo that the partnership with Amazon is crucial for expanding the company's enterprise market share, with Amazon planning to invest up to $50 billion to support this strategy.
- Competitive Market Pressure: OpenAI is working to reduce its reliance on Microsoft, which has invested over $13 billion since 2019; however, Dresser noted that collaboration with Amazon will better meet enterprise customer needs.
- Enterprise Revenue Growth: Dresser stated that OpenAI's enterprise business accounts for 40% of total revenue and is on track to reach parity with consumer business by year-end, which will significantly enhance the company's market position.
- Industry Dynamics and Challenges: Amidst intensifying competition in the AI sector, OpenAI faces strong rivals like Anthropic and Google, with Dresser pointing out that Anthropic's strategy has strategic missteps, particularly in not securing sufficient computing power, which may impact its market performance.
See More
Oracle's Backlog Surges 325% Year Over Year
- Backlog Surge: Oracle's Remaining Performance Obligations (RPO) reached $553 billion in Q3 of fiscal 2026, reflecting a staggering 325% year-over-year increase, indicating strong revenue visibility and justifying ongoing capital expenditures for future growth.
- Significant Revenue Growth: The company's overall revenue rose 22% year-over-year, with the cloud infrastructure segment experiencing an impressive 84% increase, nearing $5 billion, showcasing Oracle's robust demand and competitive positioning in the cloud market.
- Stock Price Opportunity: Despite Oracle's stock plummeting over 57% from its all-time high in September 2025 to around $138, this presents a buying opportunity for patient investors, with a forward P/E ratio now at approximately 18, suggesting a more reasonable valuation.
- Optimistic Future Outlook: Oracle reaffirmed its fiscal 2026 guidance while raising expectations for 2027, projecting revenues could reach $90 billion, demonstrating the company's confidence in long-term growth despite current market volatility.
See More
OpenAI's Amazon Partnership Drives Enterprise Growth
- Strategic Partnership: OpenAI's new revenue chief, Denise Dresser, highlighted in an internal memo that the alliance with Amazon is a key growth driver for its enterprise business, with Amazon planning to invest up to $50 billion, reflecting strong market demand for AI solutions.
- Market Share Expansion: Dresser noted that OpenAI's enterprise business constitutes 40% of the company's revenue and is on track to reach parity with its consumer business by year-end, indicating rapid growth in a competitive AI landscape against rivals like Anthropic and Google.
- Technical Collaboration Challenges: While the partnership with Microsoft is deemed core, Dresser mentioned it has also constrained OpenAI's flexibility, particularly in meeting enterprise clients' needs for Amazon's Bedrock platform, highlighting the complexities of their technological collaborations.
- Industry Dynamics Impact: At an AI industry conference, Anthropic's Claude model garnered significant attention, with Dresser criticizing its strategy as based on “fear and restriction,” emphasizing that OpenAI's positive messaging will ultimately prevail in the market, showcasing the company's confidence in future competition.
See More
Oracle Launches New Tools to Enhance Utility Efficiency
- AI Integration: Oracle embeds AI technology across its Utilities Industry Suite to break down data silos and enhance intelligent workflows, thereby accelerating decision-making and enabling utilities to achieve higher operational efficiency amid infrastructure investment pressures.
- Customer Platform Enhancement: The upgraded Oracle Utilities Customer Platform leverages AI-powered anomaly detection and in-memory processing, allowing utilities to significantly reduce billing exceptions and operational costs while enhancing customer interactions and loyalty, which is expected to improve overall customer experience.
- Significant Cost Savings: Since 2009, Oracle's solutions have helped utility customers save over $4.3 billion on energy costs and built a gigawatt-scale peak resource fueled by AI and customer action, demonstrating its strong capabilities in optimizing grid performance and integrating renewable energy.
- Customer Support Solutions: Oracle's Affordability Solution provides utilities with personalized savings opportunities and a one-stop service to help customers manage increasing affordability pressures, thereby improving collections outcomes and enhancing customer satisfaction.
See More
Oracle Stock Volatility Creates Investment Opportunity
- Stock Volatility: Oracle's stock plummeted over 57% from its all-time high in September 2025 to about $138 as of April 11, 2023, reflecting market concerns over its heavy capital expenditures.
- Strong Performance Metrics: The company's Remaining Performance Obligations (RPOs) reached $553 billion in Q3 of fiscal 2026, marking a 325% year-over-year increase, indicating robust revenue visibility for the future.
- Cloud Infrastructure Growth: Oracle's cloud infrastructure revenue surged 84% year-over-year, nearing $5 billion, underscoring its significant position in the rapidly expanding cloud market despite high capital spending.
- Investment Opportunity: Despite short-term stock fluctuations, Oracle's forward P/E ratio has dropped to about 18, and its enterprise value-to-EBITDA ratio is approximately 17.5, suggesting the stock is fairly priced, presenting a solid buying opportunity for long-term investors.
See More
Oracle Stock Faces Short Selling Pressure
- Significant Short Pressure: According to Hazeltree's report, Oracle has become one of the most shorted large-cap stocks in North America, with its stock price down approximately 29% year-to-date, reflecting market concerns over its high valuation and substantial debt, particularly amid escalating geopolitical tensions.
- Strong Earnings Report: Despite Oracle achieving a 24% year-over-year increase in earnings and a 22% rise in revenue in its latest quarterly report, along with a 44% surge in cloud revenue, the stock price failed to rebound significantly, indicating market caution regarding its future growth prospects.
- Massive Remaining Performance Obligations: Oracle's remaining performance obligations (RPO) stand at a staggering $553 billion, up 325% year-over-year; however, $300 billion of this is tied to a deal with OpenAI, raising investor concerns about the realization of these obligations, which could impact future cash flow.
- Heavy Debt Burden: With total debt around $162 billion and a debt-to-equity ratio of 415%, Oracle anticipates a 17% revenue growth, but much of this revenue will be allocated to debt repayment, potentially exerting pressure on earnings.
See More
OpenAI Partners with Amazon to Expand Enterprise Market Share
- Strategic Partnership Highlight: OpenAI's revenue chief Denise Dresser emphasized in a memo that the partnership with Amazon is crucial for expanding the company's enterprise market share, with Amazon planning to invest up to $50 billion to support this strategy.
- Competitive Market Pressure: OpenAI is working to reduce its reliance on Microsoft, which has invested over $13 billion since 2019; however, Dresser noted that collaboration with Amazon will better meet enterprise customer needs.
- Enterprise Revenue Growth: Dresser stated that OpenAI's enterprise business accounts for 40% of total revenue and is on track to reach parity with consumer business by year-end, which will significantly enhance the company's market position.
- Industry Dynamics and Challenges: Amidst intensifying competition in the AI sector, OpenAI faces strong rivals like Anthropic and Google, with Dresser pointing out that Anthropic's strategy has strategic missteps, particularly in not securing sufficient computing power, which may impact its market performance.
See More
Oracle's Backlog Surges 325% Year Over Year
- Backlog Surge: Oracle's Remaining Performance Obligations (RPO) reached $553 billion in Q3 of fiscal 2026, reflecting a staggering 325% year-over-year increase, indicating strong revenue visibility and justifying ongoing capital expenditures for future growth.
- Significant Revenue Growth: The company's overall revenue rose 22% year-over-year, with the cloud infrastructure segment experiencing an impressive 84% increase, nearing $5 billion, showcasing Oracle's robust demand and competitive positioning in the cloud market.
- Stock Price Opportunity: Despite Oracle's stock plummeting over 57% from its all-time high in September 2025 to around $138, this presents a buying opportunity for patient investors, with a forward P/E ratio now at approximately 18, suggesting a more reasonable valuation.
- Optimistic Future Outlook: Oracle reaffirmed its fiscal 2026 guidance while raising expectations for 2027, projecting revenues could reach $90 billion, demonstrating the company's confidence in long-term growth despite current market volatility.
See More
OpenAI's Amazon Partnership Drives Enterprise Growth
- Strategic Partnership: OpenAI's new revenue chief, Denise Dresser, highlighted in an internal memo that the alliance with Amazon is a key growth driver for its enterprise business, with Amazon planning to invest up to $50 billion, reflecting strong market demand for AI solutions.
- Market Share Expansion: Dresser noted that OpenAI's enterprise business constitutes 40% of the company's revenue and is on track to reach parity with its consumer business by year-end, indicating rapid growth in a competitive AI landscape against rivals like Anthropic and Google.
- Technical Collaboration Challenges: While the partnership with Microsoft is deemed core, Dresser mentioned it has also constrained OpenAI's flexibility, particularly in meeting enterprise clients' needs for Amazon's Bedrock platform, highlighting the complexities of their technological collaborations.
- Industry Dynamics Impact: At an AI industry conference, Anthropic's Claude model garnered significant attention, with Dresser criticizing its strategy as based on “fear and restriction,” emphasizing that OpenAI's positive messaging will ultimately prevail in the market, showcasing the company's confidence in future competition.
See More
Oracle Launches New Tools to Enhance Utility Efficiency
- AI Integration: Oracle embeds AI technology across its Utilities Industry Suite to break down data silos and enhance intelligent workflows, thereby accelerating decision-making and enabling utilities to achieve higher operational efficiency amid infrastructure investment pressures.
- Customer Platform Enhancement: The upgraded Oracle Utilities Customer Platform leverages AI-powered anomaly detection and in-memory processing, allowing utilities to significantly reduce billing exceptions and operational costs while enhancing customer interactions and loyalty, which is expected to improve overall customer experience.
- Significant Cost Savings: Since 2009, Oracle's solutions have helped utility customers save over $4.3 billion on energy costs and built a gigawatt-scale peak resource fueled by AI and customer action, demonstrating its strong capabilities in optimizing grid performance and integrating renewable energy.
- Customer Support Solutions: Oracle's Affordability Solution provides utilities with personalized savings opportunities and a one-stop service to help customers manage increasing affordability pressures, thereby improving collections outcomes and enhancing customer satisfaction.
See More
Oracle Stock Volatility Creates Investment Opportunity
- Stock Volatility: Oracle's stock plummeted over 57% from its all-time high in September 2025 to about $138 as of April 11, 2023, reflecting market concerns over its heavy capital expenditures.
- Strong Performance Metrics: The company's Remaining Performance Obligations (RPOs) reached $553 billion in Q3 of fiscal 2026, marking a 325% year-over-year increase, indicating robust revenue visibility for the future.
- Cloud Infrastructure Growth: Oracle's cloud infrastructure revenue surged 84% year-over-year, nearing $5 billion, underscoring its significant position in the rapidly expanding cloud market despite high capital spending.
- Investment Opportunity: Despite short-term stock fluctuations, Oracle's forward P/E ratio has dropped to about 18, and its enterprise value-to-EBITDA ratio is approximately 17.5, suggesting the stock is fairly priced, presenting a solid buying opportunity for long-term investors.
See More
