Oracle has formalized its long-awaited investment in TikTok U.S., taking a non-controlling but substantial stake alongside Silver Lake and Abu Dhabi’s MBG in the newly established TikTok USDS Joint Venture LLC. The consortium now holds 45% of the U.S. business, with the remaining 20% retained by ByteDance. Oracle’s role encompasses providing software assurances, algorithm security and data protection measures to comply with the 2025 Executive Order mandating majority American ownership. The deal elevates Oracle’s profile in consumer-facing digital services and demonstrates its ability to win high-profile partnerships that blend cloud infrastructure with national security requirements.

Oracle is advancing its cloud offerings in the regulated sector by pursuing FedRAMP Moderate authorization for Primavera Cloud, its flagship project-management platform. Obtaining this authorization would position Oracle to compete for multi-year, high-value contracts across civilian and defense agencies, where secure handling of project data and adherence to NIST cybersecurity standards are mandatory. Industry sources estimate that a single five-year federal modernization contract can exceed USD 200 million in total contract value, suggesting a potential five-fold increase in annual federal cloud bookings for Oracle once certification is achieved.

Oracle reported a remaining performance obligation backlog of USD 523 billion as of Q2 fiscal 2026, representing a 438% year-over-year increase driven largely by renewed commitments from hyperscale customers. This backlog equates to more than 30 quarters of current quarterly revenue run rates and underscores Oracle’s strength in securing long-term cloud and software deals. While fulfillment requires significant capital investment in data centers and network capacity, the backlog provides investors with clear revenue visibility and mitigates near-term volatility in subscription renewals.

In the third quarter of 2025, prominent hedge funds led by David Tepper reduced their Oracle holdings, crystallizing gains after the company’s cloud infrastructure business delivered 34% year-over-year revenue growth. The selling pressure followed a surge in Oracle’s valuation during H2 2024, driven by a landmark USD 300 billion multi-year commitment from OpenAI for cloud compute services. Despite the profit-taking, Oracle remains well-funded with USD 112 billion in net debt on its balance sheet and continues to trade at approximately 33 times trailing earnings, reflecting persistent investor confidence in its AI and enterprise software growth trajectory.