Oracle reported a 438% year-over-year increase in remaining performance obligations, swelling its backlog by $68 billion in Q2 of fiscal 2026 to an unprecedented $523 billion. This contracted revenue pipeline—which includes multi-year commitments from hyperscale customers such as Meta Platforms and Nvidia—underpins the company’s cloud infrastructure expansion and supports a 34% year-over-year increase in OCI revenue. With Oracle recognizing $16 billion in Q2 revenue (up 14% year over year) and longer-term investors having seen a 200% gain over five years, the backlog is a critical indicator of future cash flow, provided the company can execute on data-center build-outs and customer onboarding.

In his latest 13F filing, Appaloosa Management’s David Tepper disclosed that he sold his remaining Oracle stake, booking gains after initial purchases in late 2023. Tepper’s thesis on Oracle centered on underappreciated AI infrastructure potential, particularly following strong earnings and a $300 billion cloud contract with OpenAI. However, concerns over heavy capital expenditures for data-center construction and execution risk on a leveraged balance sheet prompted his exit. Tepper redirected proceeds into Qualcomm, valuing its 13x forward P/E and diversification across smartphone, automotive and data-center AI chips as a more favorable risk-reward profile.