Oracle Just Revealed a Massive $638 Billion Backlog. Here's Why the Stock Fell Anyway.

Oracle's fiscal fourth-quarter revenue rose 21%, helped by 93% growth in cloud infrastructure.

Remaining performance obligations soared to a record $638 billion.

The company plans to raise about $40 billion in fiscal 2027 to help fund its data center build-out.

Oracle (NYSE: ORCL) reported its results for the fiscal fourth quarter of 2026 (the period ended May 31) after the market closed on Wednesday, and by most measures, the report was excellent. Revenue rose 21% year over year to $19.2 billion, and the company's backlog of contracted future revenue swelled to a record $638 billion. Management also stood by its forecast for revenue to reach $90 billion in fiscal 2027 -- growth of about 34%. Yet shares of the cloud and database giant slipped about 7% in after-hours trading as of this writing.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Part of the market's concern seems to center on what all of this growth costs. Oracle said it plans to raise about $40 billion in fiscal 2027 to help fund its artificial intelligence (AI) data center build-out -- on top of the $48 billion of debt and equity it raised in fiscal 2026.

Here's a closer look at the quarter, including the heavy spending required to make it happen.

Oracle's cloud infrastructure business, which rents out computing power (much of it used for AI training and inferencing) once again drove the results. The segment's revenue rose 93% year over year to $5.8 billion in the fiscal fourth quarter. And the quarter-to-quarter trend is arguably as impressive as the headline number. From 55% to 68% to 84% and now 93%, the segment's year-over-year growth rate accelerated in every quarter of fiscal 2026.