Oracle reported that its remaining performance obligations (RPO) surged to $523 billion at the end of fiscal Q2 2026, representing a fourfold year-over-year increase from approximately $130 billion. This backlog includes a landmark five-year, $300 billion cloud computing contract with OpenAI, signed in September 2025, which underpins the majority of the increase. Management highlighted that roughly 60% of the RPO is tied to AI and hyperscale infrastructure agreements, providing multi-year revenue visibility and underscoring the company’s strategic pivot toward data center capacity and cloud-based AI services.

On January 14, 2026, a group of institutional bondholders filed a lawsuit in New York federal court alleging that Oracle failed to disclose plans to raise an additional $38 billion in debt during Q4 2025 to fund two new data centers for the OpenAI partnership. The complaint points to November 13, 2025 media reports and a December 10 earnings call disclosure—during which Oracle’s CFO revealed that fiscal 2026 capital expenditures would be about $15 billion higher than Q1 forecasts—as evidence that the company materially misled investors about its leverage and financing needs.

The Portnoy Law Firm announced on January 15, 2026 that it has initiated an investigation into possible securities fraud by Oracle and may pursue a class action on behalf of shareholders. The investigation follows the November and December disclosures regarding the OpenAI cloud agreement and the steep CapEx revision. Investors with losses stemming from alleged omissions or misrepresentations are invited to contact the firm for a complimentary case evaluation, signaling potential legal and reputational headwinds for Oracle as it accelerates its AI infrastructure investments.