Oracle’s Aggressive Cloud Push Strains Balance Sheet Amid Market Skepticism
Oracle's sudden surge in cloud commitments has catapulted it to the top tier of hyperscalers, with remaining performance obligations reaching unprecedented levels. The company's backlog growth—fueled by several massive deals—triggered a sharp stock re-rating last September as analysts revised earnings projections upward.
Unlike cloud giants Microsoft, Amazon, and Alphabet, Oracle lacks the balance sheet strength to self-fund its ambitious expansion. The company now carries significant debt to finance its cloud infrastructure build-out, creating a risky divergence between its valuation premium and underlying financial constraints.