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4d ago

Oracle Shares Jump on Record $455 Billion Backlog

A sweeping cloud buildout lifts capex, creating near-term margin risk.

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June 12, 2024, Asuncion, Paraguay: Oracle (NYSE: ORCL) logo is displayed on a smartphone backdropped by visual representation of stock and line charts. (Credit Image: © Andre M. Chang/ZUMA Press Wire

Overview

  • Oracle closed up 36% at $328.33 for its best single-day gain since 1992, with shares edging a further 1.4% higher in after-hours trading on Thursday.
  • Remaining performance obligations reached $455 billion, up 359% year over year and larger than cloud peers’ backlogs according to Jefferies.
  • Jefferies raised its price target to $360 and projects Oracle Cloud Infrastructure revenue to rise 77% in fiscal 2026 to $18 billion and reach $144 billion by 2030.
  • Multicloud database revenue grew by more than 1,500% year over year, and Oracle plans 37 additional data centers to support demand.
  • Total revenue grew 12% versus 13% expected, while Oracle lifted fiscal 2026 capital spending guidance to $35 billion, and analysts cautioned that the buildout could pressure margins.