Markets ORCL JUN 13, 2026

Oracle hits $638B RPO, jumps 363% — then drops 10% on $40B raise plan

ORCL beat with $19.2B in Q4 revenue and 93% OCI growth, but shares fell after-hours when management flagged ~$40B in new FY2027 debt and equity.

BY HENLEY MARRAST · MARKETS DESK

Oracle reported a record-breaking Q4 on Wednesday and watched its stock fall roughly 10% in extended trading anyway, after management told analysts the company plans to raise about $40 billion in new debt and equity during FY2027.

The headline numbers were unambiguously strong. Total revenue hit $19.2 billion, up 21% year-over-year. Non-GAAP EPS of $2.11 rose 24%. Oracle Cloud Infrastructure revenue grew 93% to $5.8 billion. And remaining performance obligations, the deferred backlog that has become the AI era’s preferred forward indicator, climbed to $638 billion, up 363% year-over-year and $85 billion above Q3’s $553 billion.

The composition of that backlog is where the bull and bear cases collide. Co-CEO Clay Magouyrk told analysts Oracle “signed $67 billion in AI infrastructure contracts this quarter, the majority of which was either bring your own hardware or prepaid,” with the combined BYOH-or-prepaid book reaching $75 billion. Four individual customers each signed for more than $8 billion in a single quarter. Backlog of this shape, concentrated and prepaid, is the cleanest signal yet that hyperscaler-tier AI buyers are committing capital years forward.

It’s also why the financing arithmetic spooked the tape. CFO Hilary Maxson walked through FY2026’s $43 billion in debt and $5 billion in equity, then guided to roughly $40 billion more in FY2027, including a previously announced $20 billion at-the-market equity program. Maxson did note Oracle doesn’t expect additional debt issuance in calendar 2026. Operating cash flow hit a record $32 billion, up 54%, but free cash flow ran negative $23.7 billion as net capex reached $48 billion. Oracle delivered more than 1.2 gigawatts of infrastructure in FY2026 and expects Q1 FY2027 alone to approach a gigawatt.

Guidance held the line: Q1 FY2027 revenue growth of 27%–29%, cloud growth of 57%–63% in constant currency, EPS of $1.71–$1.76.

TheStreet’s framing, that Oracle has become “a key barometer for gauging AI-credit risk,” captures the trade. The 363% RPO print is the bull case. The $40 billion raise is the bear case. They’re, mechanically, the same sentence.

Sources

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.