Markets ORCL JUN 10, 2026

Oracle clears $1 trillion RPO trajectory but slides 7% on $40B raise plan

ORCL beat on Q4 revenue and EPS, with OCI up 93%, then sank after-hours as capex hit $55.7B and the company flagged another $40B raise for FY2027.

BY HENLEY MARRAST · MARKETS DESK

Oracle shares fell 7.4% in after-hours trading on June 10 after the company posted a clean Q4 beat, a record backlog, and a capital plan that the market read as the real headline. Revenue of $19.18 billion (up 21%) edged the LSEG consensus of $19.10 billion, and adjusted EPS of $2.03 cleared the $1.96 estimate. The selling started anyway, and it started where it should’ve: on the balance sheet.

The cloud lines did what bulls needed them to do. Total cloud revenue hit $9.9 billion, up 47%. Oracle Cloud Infrastructure was up 93% to $5.8 billion. Cloud Applications grew a more pedestrian 10% to $4.1 billion. Non-GAAP operating income was a record $8.6 billion, up 22%.

Remaining Performance Obligations, the metric Oracle has been training the Street to watch, finished the quarter at $638 billion. That’s a 363% year-over-year increase and an $85 billion sequential jump from $553 billion. More than 50% of that backlog sits with a single counterparty: OpenAI. The trillion-dollar RPO trajectory analysts have been sketching out since the fall is no longer theoretical.

What it costs to service that backlog is the problem. FY2026 capex landed at $55.66 billion, up 162%, with $15.9 billion booked in Q4 alone. Free cash flow ran negative $23.7 billion for the year. CEO Clay Magouyrk guided to roughly one gigawatt of compute coming online in Q1 FY2027 and a $70 billion net cash outlay for FY2027 capex, and told analysts Oracle plans to raise about $40 billion more in debt and equity next year. Oracle already raised $43 billion in debt and $5 billion in equity in FY2026, on top of a previously announced $20 billion at-the-market equity program, and Q3 debt sat at $162 billion.

Guidance itself was fine: $90 billion in FY2027 revenue, adjusted EPS of $8.05 against an $8.01 consensus, with Q1 EPS of $1.72 to $1.76 on 27% to 29% revenue growth. Bank of America stayed at buy.

The discomfort is structural. Oracle has effectively become a used AI infrastructure vehicle whose largest customer is a private company burning capital at a comparable pace. That isn’t 1999 dotcom froth; it’s closer to the vendor-financing dynamics of the late-1990s telecom buildout, when Lucent and Nortel booked enormous forward orders that depended on counterparties whose own funding wasn’t yet settled. The RPO number is real. The financing stack underneath it’s what investors voted on.

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About the author

Henley Marrast

MARKETS DESK

Henley Marrast covers AI-equity flow, accelerator demand, and earnings prints for AI Sheet Report. She leads coverage of the public AI complex from the New York markets desk, with a focus on the daily tape and quarterly results. She has been writing about technology markets for several years.