Oracle AI Growth and Backlog Support Buy Rating

Oracle retains a Buy rating as strong AI and cloud demand supports its growth outlook. First-quarter revenue increased 30% year over year, and cloud infrastructure revenue rose 121%. The company delivered 850 megawatts of AI capacity, reaching 85% of its guidance, with utilization at 97.9%; renewals were priced at a 20% premium. Remaining performance obligations reached $664 billion, while contracted backlog covers about 93% of fiscal 2027 revenue guidance. About $86 billion is expected within 12 months, and customer prepayments are funding roughly 40% of capital expenditure. The latest assessment adds that Oracle’s leverage is elevated, with a debt-to-equity ratio of 3.51, but describes liquidity as solid and default risk as low. Its forward EV/EBITDA is 29.6% below its five-year average. Execution remains the main risk: permitting delays at the Jupiter project in New Mexico could slow development, although they are not currently expected to affect fiscal 2027 guidance. For traders, the key question is whether Oracle can convert its large backlog into revenue on schedule; the reports attribute share-price concerns chiefly to timing, rather than weakening AI demand.