Oracle stock soared to an all-time high in September 2025, then slid more than 57% and traded around $138 a share by April 11 as a broader technology sell-off fed doubts about the company’s heavy spending on cloud infrastructure. The swing has left Orcl caught between fear and faith: investors are questioning the bill, while Oracle keeps pointing to the business it is building.
The strongest case for the stock now sits in one number: Oracle said Remaining Performance Obligations reached $553 billion in the third quarter of its 2026 fiscal year, up 325% from a year earlier. In its latest quarterly report, revenue rose 22% year over year and cloud infrastructure revenue jumped 84%, pushing that segment closer to $5 billion in sales. Oracle also reaffirmed its 2026 fiscal year guidance and raised its 2027 outlook, saying revenue could reach $90 billion that year.
That combination matters because it gives investors something concrete to measure against the pullback. Oracle is no longer just promising that its cloud push will pay off someday; it is showing faster revenue growth now, a far larger backlog than a year ago and a guidance reset that implies management believes demand is still building. The stock’s forward price-to-earnings ratio of about 18 and enterprise value-to-EBITDA ratio of roughly 17.5 also suggest the market is not pricing in a runaway valuation.
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Still, the stock’s drop was not random. It came amid a wider technology sell-off, and the concern was not that Oracle lacked demand but that it might spend too aggressively to chase it. That tension is the heart of the debate around the company: the cloud business is growing quickly, but the capital intensity of getting there has made some investors hesitate even as Oracle has posted the kind of backlog numbers that usually belong to a company with years of visibility.
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One promotional stock-picking note from The Motley Fool underscored how much the market is split on Oracle. The firm said Oracle was not among its 10 best stocks for investors to buy now, while its Stock Advisor service promoted a long-term return history of 968% versus 191% for the S&P 500 as of April 13, 2026. For now, Oracle looks less like a simple momentum trade than a test of whether investors will value the scale of its backlog over the cost of building it.
