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

Oracle reported strong Q4 fiscal 2026 results with 21% revenue growth and a record $638 billion backlog, driven by 93% growth in cloud infrastructure. However, the stock fell 7% after-hours due to concerns about the massive capital expenditure required—$55.7 billion in fiscal 2026 with plans to raise $40 billion more in fiscal 2027. While customer prepayments help offset costs, the backlog heavily depends on large AI contracts like a reported $300 billion OpenAI deal, creating execution and counterparty risk.