Oracle's cloud backlog (remaining performance obligations) reached $664 billion and cloud infrastructure revenue rose 121% to $7.39 billion, yet free cash flow was negative $5.4 billion last quarter and negative $23.7 billion in fiscal 2026. Management expects $90 billion to $95 billion in capex this year, interest expense rose 55% to $1.4 billion, and the company plans to raise about $40 billion more through debt and equity after a $20 billion equity sale. The CFO declined to give a timeline for positive free cash flow. Shares trade at $131.14, about 16x the $8.10 non-GAAP EPS guidance, but are down 31.85% year to date while the S&P 500 is up 12.78%, and the article argues the valuation hinges on whether cash flow catches up with the backlog.
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| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/20/2026 | 769.01 |
| Change that session | +0.33% |
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