Oracle: The $500 Billion Backlog vs. the $125 Billion Debt
Oracle has achieved significant revenue and EPS growth, but is facing financial pressure due to a large debt and a strained balance sheet. The company is raising $50 billion in new financing to fund its data center expansion, despite having a $124.7 billion non-current debt and a trailing free cash flow deficit of $24.736 billion.
Oracle recently delivered its first quarter in 15 years with both organic total revenue and non-GAAP EPS growing by 20% or more. This surge was fueled by an 84% jump in IaaS revenue to $4.888 billion. The company has a $553 billion backlog in remaining performance obligations, but is facing financial pressure due to a large debt. Oracle is raising up to $50 billion in new financing to fund its data center expansion. The company's non-current debt will increase to $124.7 billion. Oracle is also cutting 18% of its workforce to free up cash for AI infrastructure spending.
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