Oracle stock has fallen 56% from last year’s peak as investors question whether its record $638 billion remaining performance obligations can translate into cash without straining the balance sheet.
The concern is concentration: a Wall Street Journal report last September said about $300 billion of that backlog came from OpenAI, raising doubts about whether key AI customers can ultimately absorb such massive commitments.
Oracle’s core AI infrastructure business is still expanding fast — cloud infrastructure revenue jumped 93% to $5.8 billion in fiscal fourth quarter, helping lift total revenue 21% to $19.2 billion.
Oracle may get a chance to calm markets on Sept. 8, when it reports fiscal 2027 first-quarter results, but the report is not expected to quickly reverse sentiment around debt and customer risk.