Oracle (ORCL) Reports a $664 Billion Backlog. Can AI Growth Outpace its Cash Burn?

On September 11, 2026, Reuters reported that Oracle Corporation (NYSE: ORCL ) topped Wall Street estimates for its fiscal first-quarter results and reported a smaller cash burn than expected. It sent shares up 4% in extended trading and offered investors confidence that its AI infrastructure investments are generating returns without overwhelming its balance sheet.

Oracle booked more than $30 billion in additional AI cloud contracts during the quarter. It pushed its total revenue backlog to $664 billion, well above the $639.89 billion analysts had expected.

Oracle Corporation (NYSE: ORCL ) is converting booming AI cloud demand into rapid revenue and earnings growth. Fiscal first-quarter revenue increased 30% year over year to $19.3 billion, topping the $19.14 billion consensus. Adjusted EPS of $1.92 beat expectations of $1.74. Cloud revenue jumped 62% to $11.6 billion, and cloud infrastructure revenue surged 121% to $7.4 billion. It shows that Oracle's AI infrastructure expansion is already driving substantial top-line growth.

Oracle eased one of investors' biggest concerns by burning far less cash than Wall Street expected while customers helped finance its infrastructure buildout. The company reported negative free cash flow of $5.40 billion versus the $9.56 billion outflow analysts expected and well below the $11.48 billion burn it reported two quarters earlier. Customers also provided roughly $11.36 billion of prepayments against Oracle's $28.50 billion of quarterly capital expenditures, reducing the amount of capital Oracle must supply itself.

The company's record backlog gives investors substantial visibility into future AI cloud revenue. Oracle booked more than $30 billion of additional AI cloud contracts during the quarter, lifting remaining performance obligations to $664 billion from $638 billion at the end of fiscal 2026. The business expects roughly half of that backlog to convert into revenue within 36 months and raised its fiscal 2027 adjusted EPS forecast to $8.10 from $8.05. It now expects annual revenue of at least $90 billion.

Oracle Corporation (NYSE: ORCL ) still burns billions of dollars despite the better-than-expected quarterly cash flow result. The company had negative free cash flow of $5.40 billion in the quarter as its massive AI infrastructure buildout continued to consume cash. Reuters reported $129.5 billion of debt and leverage of roughly 4.3 times EBITDA, leaving investors exposed to financing and balance-sheet risk if cash generation fails to improve quickly enough.