Oracle Forecasts $95B Capex, $638B Backlog Up 363% as Shares Drop 11%
ORCL•Oracle reported fourth-quarter results beating expectations and its remaining performance obligations jumped 363% year-over-year to a record $638 billion, surpassing both Alphabet and Microsoft. The company projected up to $95 billion in fiscal 2027 capital expenditures and plans to raise $40 billion in new debt and equity, triggering an 11% stock sell-off.
1. Q4 Results and Backlog Growth
Oracle posted fourth-quarter revenue above consensus and reported remaining performance obligations jumped 363% year-over-year to $638 billion, exceeding the $627 billion backlog at Alphabet and $460 billion at Microsoft.
2. Fiscal 2027 Capital Expenditure Outlook
The company plans up to $95 billion in capital spending for fiscal 2027, including $70 billion in core capex and $20–25 billion for prepayments, after investing $55.7 billion in the prior year.
3. Financing Strategy and Stock Reaction
Oracle will raise $40 billion through debt and equity issuances to fund its spending plan, with $20 billion slated for share sales, which helped trigger an 11% share price decline in overnight trading.
