Oracle Stock Falls 21% as IaaS Grows 68% and Backlog Hits $523B
Oracle's stock has dropped 21% year-to-date after beating EPS but missing revenue estimates last quarter. IaaS revenue surged 68% year-over-year and remaining performance obligations reached $523 billion ahead of Tuesday's earnings report.
1. IaaS Growth and Backlog
Oracle's infrastructure-as-a-service revenue climbed 68% year-over-year, fueled by demand from hyperscalers and AI developers. Remaining performance obligations reached $523 billion, underscoring robust multicloud database commitments and long-term revenue visibility.
2. Previous Quarter Performance
In the prior quarter, Oracle beat earnings-per-share estimates but missed on total revenue, triggering concerns over elevated capital expenditures. The stock has slid 21% since January and trades well below the $257.29 consensus price target as investors digest the mixed results.
3. Upcoming Earnings Focus
Tuesday's earnings call will center on cloud revenue execution, multicloud partnerships and the OpenAI collaboration outlook. Prediction markets assign a 78.5% probability of an earnings beat, reflecting confidence in Oracle's cloud momentum despite recent headwinds.