Oracle Shares Fall 12% After Earnings Despite $85 Billion Backlog Rise and $25 Billion Prepayments

Oracle shares fell 12 percent after the company reported earnings, marking its steepest single-day selloff since late 2025. Market participants reacted negatively to management's bold $95 billion capital expenditure layout mapped for FY2027, sparking short-term debt and liquidity concerns. Oracle's total sales backlog increased by $85 billion sequentially.

The software pioneer has already secured over $25 billion in liquid upfront cash prepayments from corporate hyperscale clients. Seeking Alpha's automated data rates Oracle a BUY. By using aggressive near-term leverage to build out data center capacity, Oracle is betting that locking in long-term AI training workloads will yield supreme equity returns over the decade.