Oracle has officially closed its long-awaited deal to acquire a meaningful equity position in the newly formed TikTok USDS Joint Venture LLC. Alongside private equity firm Silver Lake and Abu Dhabi-based Mubadala-backed MGX, Oracle now collectively controls 45% of TikTok’s U.S. operations. The remaining 20% remains under ByteDance ownership, while non-Chinese investors hold an 80% majority. The agreement, structured to comply with the U.S. Executive Order of September 25, 2025, names Adam Presser—formerly head of TikTok’s U.S. operations—as CEO of the new entity. Investors will be watching closely how Oracle’s technology and data-security safeguards integrate with TikTok’s algorithmic platform under this majority-American structure.

In its second quarter of fiscal 2026, Oracle reported that remaining performance obligations (RPO) climbed by $68 billion, ending the period with a staggering $523 billion backlog—a 438% year-over-year increase. This reserve of contracted revenue, driven in large part by renewed commitments from hyperscale clients such as Meta Platforms and Nvidia, underpins the company’s forecast of multi-year revenue visibility. Oracle’s cloud infrastructure revenue alone rose by 34% year-over-year, while total second-quarter revenues reached $16 billion, up 14% versus a year earlier. These figures underscore Oracle’s positioning as an essential AI and data center provider, though execution risks remain tied to capital expenditures for new facilities.

Oracle is advancing its Primavera Cloud service through the rigorous FedRAMP Moderate authorization process, aiming to qualify for multi-year federal contracts worth hundreds of millions annually. Achieving this accreditation would enable Oracle to compete for project awards within agencies requiring stringent security controls—such as the Departments of Defense, Homeland Security and Health and Human Services—potentially adding high-margin, recurring revenue streams over the next five to seven years. Market analysts estimate that the federal cloud services segment could expand at a 12% compound annual growth rate through 2030, making this strategic certification a key catalyst for Oracle’s regulated-market growth ambitions.

At a trailing P/E ratio of approximately 33x and an expected earnings growth rate of 23%, Oracle’s shares trade at a premium relative to peers. The company carries $112 billion in net debt—an obligation that elevates its enterprise valuation metrics—while maintaining a gross margin north of 65% and a dividend yield around 1.1%. Oracle’s net debt to EBITDA ratio stands at roughly 2.8x, a manageable level for a company generating strong free cash flow. Investors balancing the strength of Oracle’s backlog and strategic investments in AI and cloud must weigh these against leverage levels and execution risk in data-center build-outs.