Oracle: The $500 Billion Backlog vs. the $125 Billion Debt

Quick Read

• Oracle (ORCL) achieved organic total revenue and non-GAAP EPS growth of 20%+ in the same quarter for the first time in 15 years, with IaaS revenue surging 84% to $4.888B, but the company is now raising $50B in debt to fund data center expansion while facing a $24.736B trailing free cash flow deficit and cutting 18% of its workforce.

• Oracle’s $553B backlog in remaining performance obligations carries severe concentration risk, with $300B tied to OpenAI—a company with only $25B in annual revenue and mounting losses—while U.S. banks have scaled back financing due to debt repayment concerns.

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