NEW YORK, July 5, 2026, 15:04 (EDT)
- Oracle finished the holiday-shortened week at $140.27, down 5.6% as of the July 2 close. U.S. cash equity markets stayed closed Friday for the Independence Day holiday.
- Oracle’s market cap is around $408.5 billion, which is lower than the $638 billion in remaining performance obligations, or RPO, the company reported.
- Markets open for the week July 6, as U.S. trading resumes. Oracle’s $0.50 per share quarterly dividend has a record date of July 10.
Oracle Corporation NYSE:ORCL goes into the July 6 restart facing an unusual challenge for the market—its cloud order backlog is bigger than the company’s equity value. Shares finished at $140.27 on July 2. That put Oracle’s market cap at roughly $408.5 billion. At the end of its fiscal fourth quarter, Oracle showed $638 billion in RPO. So the market cap is about 0.64 times the reported backlog.
U.S. stock markets were closed on Friday, with the NYSE observing the Independence Day holiday on July 3. Regular trading hours are 9:30 a.m. to 4 p.m. ET on standard sessions. For Oracle, the last normal cash close before the break came on July 2.
Oracle traded down 5.6% over the week ending July 2. From the June 26 close, the S&P 500 rose 1.8%, the Dow gained 2.0% and the Nasdaq was up 2.1% in the holiday-shortened stretch.
| Holiday-shortened week ending July 2 | Close/level | Week move |
|---|---|---|
| Oracle NYSE:ORCL | $140.27 | -5.6% |
| S&P 500 | 7,483.24 | +1.8% |
| Dow Jones Industrial Average | 52,900.07 | +2.0% |
| Nasdaq Composite | 25,832.67 | +2.1% |
Investors shouldn’t treat RPO as equivalent to cash — it isn’t. The story is the market still takes a deep discount on what it thinks Oracle has to invest before its backlog turns to revenue. In fiscal 2026, Oracle (https://investor.oracle.com/investor-news/news-details/2026/Oracle-Announces-Record-Q4-and-FY-2026-Results-Driven-by-Cloud-Infrastructure–Cloud-Applications/default.aspx) reported capital expenditures of $55.7 billion, operating cash flow of $32.0 billion, and free cash flow at negative $23.7 billion.
| Oracle cash-and-backlog frame | Latest figure |
|---|---|
| Remaining performance obligations | $638 billion |
| Market value | $408.5 billion |
| Market value / RPO | 0.64x |
| FY2026 capital expenditures | $55.7 billion |
| FY2026 operating cash flow | $32.0 billion |
| FY2026 free cash flow | -$23.7 billion |
The selloff has continued, even with the upbeat numbers. Oracle said fourth-quarter cloud revenue jumped 47% to $9.9 billion. Cloud infrastructure sales surged 93% to $5.8 billion. The company kept its fiscal 2027 revenue forecast at $90 billion and boosted its non-GAAP EPS outlook to $8.05.
Oracle is projecting as much as $95 billion in capital spending for fiscal 2027, Reuters reported after earnings. That figure includes $70 billion the company plans to spend itself and another $20 billion to $25 billion it expects customers to repay. CFO Hilary Maxson said gross margins would “step down” as work on data center projects increases. Reuters
eMarketer analyst Jacob Bourne told Reuters, “The demand is real,” but flagged concerns about funding as capital spending topped forecasts and free cash flow stayed negative. On the earnings call, Oracle CEO Clay Magouyrk said first-quarter delivery was “approaching one gigawatt,” nearly matching all deliveries from the prior four quarters. Reuters
Oracle is disputing concerns about funding. The company said prepaid and customer-supplied hardware in big AI deals is now $75 billion, which it claims cuts the capital it needs to raise for AI data centers. Oracle still sees around $40 billion in debt and equity financing in fiscal 2027. That includes the $20 billion at-the-market equity sale already announced.
The losses for Oracle stock have lasted longer than just a bad week. Barron’s said on Friday that Oracle was down 24% across a nine-session losing streak, the longest losing run for the stock since 2021. Most analysts covering Oracle kept a Buy rating.
Investors have just one scheduled item from Oracle this week, with the board’s $0.50 quarterly dividend going to holders of record as of July 10. Payment hits on July 24.
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