Oracle's Backlog Soars To $523 Billion — Company Adds $15 Billion To 2026 CapEx To Keep Up - Oracle (NYSE:ORCL)

Group 1 - Oracle Corp. is significantly increasing its capital expenditures by $15 billion for fiscal 2026 to address a record backlog of $523 billion, with an additional $4 billion in sales expected by fiscal 2027 due to faster backlog conversion [1][2][4] - The company reported a mixed second quarter, achieving a 54% increase in adjusted EPS to $2.26, but falling short of revenue expectations at $16.06 billion [2][4] - Oracle's remaining performance obligations (RPO) surged by 433% year-over-year, reaching $523 billion, indicating strong future revenue potential [2][3] Group 2 - To convert its substantial backlog into revenue, Oracle plans to rapidly enhance its infrastructure, with fiscal 2026 CapEx projected to be $15 billion higher than earlier forecasts [3][4] - Despite concerns over free cash flow, which was negative $10 billion for the quarter, management remains optimistic about future revenue growth, raising the fiscal 2027 outlook by $4 billion [4][5] - Analysts view Oracle's increased spending as a strategic move, positioning the company as a key player in AI infrastructure, despite short-term volatility in stock performance [5][6] Group 3 - Following the mixed Q2 results, Oracle's shares fell by 11.53% in after-hours trading, although they have increased by 33.83% year-to-date [7] - The stock has shown a strong long-term trend but a weaker short- to medium-term performance, reflecting market concerns about its valuation [7]