Oracle Stock Is Down 58% From Its Peak -- but Revenue Is Still Growing by Double Digits. Time to Buy?
Yahoo Finance ·
It is not often that a $400 billion company loses well over half its value while its sales and profits are still climbing. Oracle ( ORCL +2.49% ) has managed exactly that. The stock trades around $144, down 58% from the $345.72 record it set last September, yet the business behind it just wrapped up the best year in its history: fiscal 2026 revenue rose 17% to about $67.4 billion, and net income climbed 37% to about $17 billion. So what broke? And with the shares this far off their highs, is the crash a buying opportunity? Nothing in Oracle's latest results looks like a company in trouble. In its fiscal fourth quarter (the period ended May 31, 2026), revenue rose 21% year over year to $19.2 billion. Total cloud revenue grew 47% to $9.9 billion, and the piece investors care about most -- Oracle Cloud Infrastructure, its rented computing power for artificial intelligence (AI) workloads -- jumped 93% to $5.8 billion. That was an acceleration from the already-rapid growth the cloud business posted earlier in the year. The backlog is where it becomes almost hard to believe. Oracle's remaining performance obligations, the contracted revenue it hasn't recognized yet, reached $638 billion at year-end. That is up 363% from a year earlier, and up $85 billion in a single quarter, reflecting a wave of enormous AI-capacity deals with a handful of very large customers.
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