From Yahoo Finance · · 1m 10s
Oracle Stock Swings
Oracle's massive RPO signals huge AI cloud growth despite stock decline.
In brief
Oracle's massive RPO signals huge AI cloud growth despite stock decline. Oracle's $664 billion remaining performance obligation suggests strong AI cloud demand but carries OpenAI concentration risk. Originally reported by Yahoo Finance.
Oracle stock down 28% year to date
Oracle shareholders haven't celebrated stock performance in 2026 as its share price is down roughly 28% year to date and off 57% from lifetime high.
Oracle reports $664 billion RPO
Oracle closed its last reported quarter with a remaining performance obligation of $664 billion.
RPO means 9.2x sales growth
Oracle's backlog is 9.2 times its trailing-12-month sales of $71.8 billion.
OpenAI concentration risk
Of Oracle's $664 billion RPO, $300 billion comes from OpenAI, creating uncertainty if OpenAI scales back growth.
Oracle expects 34% revenue growth
Oracle guides for 34% revenue growth this year and 19% earnings growth despite cloud infrastructure costs.
Stock trades at 17x earnings
Oracle stock currently trades at roughly 17 times this year's expected earnings.
AI cloud growth potential
Oracle's massive RPO points to strong AI cloud demand and potential for transformative business performance.
The headline
Oracle's $664 billion remaining performance obligation suggests strong AI cloud demand but carries OpenAI concentration risk.
