Oracle reported remaining performance obligations (RPO) of $523 billion at the end of fiscal Q3, a fourfold increase year-over-year. This backlog, driven primarily by large cloud and AI infrastructure contracts, provides clear revenue visibility through 2028. Management highlighted that roughly 60% of the newly booked RPO stems from multi-year OpenAI and enterprise hyperscale deals, underpinned by strong demand for GPU-accelerated compute and networking services on Oracle Cloud Infrastructure (OCI).

In late 2025, Oracle bond yields widened sharply, reaching levels not seen since the financial crisis era. Credit spreads on 10-year Oracle notes jumped above 250 basis points over Treasuries, reflecting investor unease around the company’s rapidly increasing leverage. Earlier disclosures revealed plans to raise up to $38 billion in additional debt to fund two new AI data centers, on top of a previously announced five-year, $300 billion cloud supply agreement with OpenAI.

On January 15, 2026, the Portnoy Law Firm announced an investigation into potential securities fraud at Oracle. The inquiry focuses on whether the company concealed the extent of rising capital expenditures and debt issuance tied to its AI build-out. Following a December 10 earnings call, when CFO disclosures indicated that fiscal 2026 CapEx would exceed prior guidance by $15 billion, shares experienced a sharp pullback, underscoring the materiality of the revised outlook to investors.

Despite near-term debt and legal overhangs, Oracle’s landmark partnership with OpenAI continues to underpin long-term growth expectations. Analyst Jefferies, noting OCI’s unique RDMA networking fabric and early access to next-generation GPUs, set a long-term price target implying nearly 100% upside. Investors remain focused on milestones from OpenAI’s fundraising efforts and product launches—such as the recently announced OpenAI Health vertical—which could translate into accelerated cloud consumption and margin expansion at Oracle.