Oracle’s remaining performance obligations hit $638 billion, driven by 93% cloud growth and pre-contracted AI deals.
Oracle reported a 363% year-over-year increase in its contracted backlog, reaching $638 billion in Q4 FY2026. The surge follows 93% growth in cloud infrastructure revenue and 97.5% global GPU utilization, signaling strong demand for its AI and multicloud services.
Management outlined an OCI revenue ramp from $18 billion this year to $144 billion by FY2030, with most future revenue already contracted. The company reaffirmed a 31% revenue CAGR and 28% EPS CAGR through fiscal 2030, despite $124.7 billion in debt and negative free cash flow.
Oracle’s stock trades at a forward P/E of 18, below peers like Microsoft (24) and Amazon (22), as the market discounts its leveraged position. Shares fell 39% over the past year to $142.45, presenting a potential asymmetry for investors.