Oracle Down 50% in a Year Despite 30% Revenue Growth and $664 Billion Backlog

Oracle shares have fallen roughly 50% over the past year even as the company reported 30% revenue growth.

In its fiscal first quarter, Oracle reported revenue of $19.35 billion, ahead of the $19.14 billion analyst consensus compiled by LSEG. Cloud revenue rose 62% to $11.6 billion. Cloud infrastructure revenue jumped 121% to $7.4 billion. Cloud application revenue rose 10% to $4.2 billion. Software segment revenue fell 3% to $5.6 billion.

Adjusted earnings per share climbed 30% to $1.92, topping the $1.74 consensus.

Remaining performance obligations — the value of already-signed, generally non-cancelable contracts, many for artificial intelligence data centers — stood at $664 billion. That was up $209 billion year over year and $26 billion sequentially.

Oracle forecast capital expenditure of between $90 billion and $95 billion this year. It said net cash capex would be $70 billion or below.

Operating cash flow reached $23.1 billion in the quarter, up from $8.1 billion a year earlier. Capex of $28.5 billion in the period pushed free cash flow to an outflow of $5.5 billion. Oracle sold $20 billion in stock during the quarter through an at-the-market equity program.

Oracle ended the quarter with $125.3 billion in debt against $37.1 billion in cash and marketable securities. Similar concerns over AI spending have weighed on the stock in recent sessions.

Oracle raised its full-year guidance, raising adjusted EPS to $8.10 on revenue of “at least” $90 billion, from $8.05 on $90 billion. For the fiscal third quarter, it forecast revenue growth of 30% to 34%, cloud revenue growth of 65% to 71%, and adjusted EPS of $1.85 to $1.93, a rise of 21% to 25%.

Oracle trades at a forward price-to-earnings ratio of under 19, and below 14 times based on fiscal 2028 estimates.

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