Oracle reported Q4 FY2026 revenue of $19.2 billion (up 21%) and full-year revenue of $67.4 billion on June 10, with cloud infrastructure revenue up 93% in the quarter. The more striking number was remaining performance obligations — $638 billion, up 363% year over year and $85 billion sequentially.
Most of that backlog is large AI contracts where customers either prepaid for GPUs or supplied the hardware themselves. CFO Hilary Maxson said Oracle expects roughly $70 billion in net capex outlay in fiscal 2027, funded by about $40 billion in fresh debt and equity. The model is a hybrid hyperscaler — Oracle buys some chips, customers prepay or bring their own for the rest, and Oracle operates the data centers.
A year ago, Oracle was a distant fourth in cloud infrastructure behind AWS, Azure, and Google Cloud. Today the backlog alone exceeds the annual cloud revenue of any single hyperscaler. The shift is almost entirely AI-driven and almost entirely tied to a handful of contracts, most notably the OpenAI Stargate program now planned at roughly 7 gigawatts of capacity and $400 billion in cumulative investment. Nvidia, AMD, Dell, and Super Micro all rallied in the open on June 11 on the read-through.
For learners: backlog metrics like RPO matter more than current revenue in capital-intensive build-outs because they signal how much demand is locked in for the years ahead. The risk side worth understanding — concentration. If a single customer renegotiates or defaults on a prepaid GPU commitment, an oversized chunk of that $638 billion can move in either direction overnight.