Oracle reports a record $638 billion in future contracts, driven by AI infrastructure deals, yet shares trade near 18-month lows.
Oracle disclosed a $638 billion backlog in remaining performance obligations, up 363% year-over-year, fueled by AI infrastructure demand. The figure represents roughly eight years of revenue at current run rates, with $67 billion in new AI contracts signed last quarter alone.
The backlog surpasses Microsoft’s and includes a $300 billion deal with OpenAI starting in 2027, the largest cloud contract ever reported. Other clients include Meta and SpaceX’s xAI unit. Despite the growth, investor skepticism persists over execution risks and capital needs.
Oracle’s stock has fallen over 55% from its 52-week high, reflecting concerns about whether customers can meet obligations and if the company can deliver without straining finances.