Oracle stock falls 1.02 percent as AI backlog stays central

Published on 10/07/2026 at 16:26 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Oracle reported USD 19.3 billion in fiscal Q1 FY2027 revenue and USD 664 billion in remaining performance obligations. Analysts see a USD 237.97 average target.

Makroaufnahme leuchtender Glasfaserstränge neben einem Prozessorchip mit Leiterbahnen — Oracle Corporation US68389X1054 visualisiert durch dramatische Makrofotografie leuchtender Glasfaserkabel neben einem detaillierten Computer-Prozessorchip mit Leiterbahnen, Illustration mit AI erstellt.

Oracle stock (ISIN US68389X1054) was trading at USD 143.30 on the NYSE on October 7, 2026, down 1.02 percent at 10:26 a.m. ET. The market is weighing the company's AI infrastructure growth against the cash demands of its expansion.

AI backlog reaches USD 664 billion

Oracle's fiscal first-quarter FY2027 revenue rose 30 percent year over year to USD 19.3 billion, while total cloud revenue increased 62 percent to USD 11.6 billion. According to Oracle on September 10, 2026, cloud infrastructure revenue climbed 121 percent to USD 7.4 billion.

Remaining performance obligations rose USD 209 billion from a year earlier to USD 664 billion in Q1 FY2027. Oracle also booked more than USD 30 billion of additional AI cloud contracts during the quarter, giving the backlog a direct connection to current infrastructure demand.

Growth meets a heavy investment bill

The growth profile came with a substantial funding requirement. Oracle generated USD 23.1 billion in operating cash flow during Q1 FY2027, but free cash flow was negative USD 5.0 billion as cloud infrastructure investment continued.

Reuters reported on September 10, 2026, that Oracle's adjusted EPS reached USD 1.92 versus a USD 1.74 consensus, while first-quarter capital expenditure totaled USD 28.50 billion. The contrast matters because contracted demand is expanding faster than the cash conversion needed to finance new data centers.

Oracle's fiscal 2027 outlook calls for at least USD 90 billion in revenue and USD 8.10 in non-GAAP EPS. For Q2 FY2027, the company guided to cloud revenue growth of 65 percent to 71 percent in USD.

Analysts see substantial upside

The consensus remains positive but dispersed. According to Investing.com on October 5, 2026, 41 analysts rated Oracle Buy overall, with 35 Buy ratings, 7 Holds and 1 Sell. The average 12-month target was USD 237.97, with a USD 110 low and USD 400 high.

At USD 143.30, the average target lies 66.1 percent above the October 7 trading price. That spread reflects confidence in AI cloud demand, while the negative free cash flow and large capital program remain the central counterweight.

Oracle stock trades below its yearly high

Oracle stock was trading at USD 143.30 on the NYSE on October 7, 2026, with a 52-week range of USD 114.50 to USD 322.54. The market capitalization was USD 412.8 billion and volume stood at 3,749,716 shares at the same timestamp.