Overview
- S&P Global cut Oracle’s long‑term rating to BBB‑ on July 9, a move that leaves the company one notch above junk and increases the chance of forced selling by bondholders.
- Oracle reports a $638 billion remaining performance obligation, a company metric for contracted future revenue that depends on delivering GPU‑heavy data centers to customers.
- Roughly half of that $638 billion backlog is concentrated with OpenAI, creating a single‑customer risk if OpenAI delays funding or scales back commitments.
- Oracle spent about $55.7 billion on capital expenditures in fiscal 2026, generated $32 billion in operating cash flow and posted negative $23.7 billion in free cash flow while adding roughly $43 billion of debt and planning about $40 billion more in fundraising.
- Markets have punished the stock, which recently hit fresh 52‑week lows and sits about 63–65% below its peak, and investors will be watching financing terms, GPU/data‑center permits and build progress, and the pace at which RPO converts to recognized revenue.