EL7.AI
StocksMediumUpdated•Originally published 11 September 2026•Updated 12 September 2026•
1 min read

Oracle Reports $664B RPO Backlog and Negative Cash Flow Amid AI Capex Surge

Key Facts

1Oracle reported that GPU capacity contracts expiring in fiscal Q1 were renewed or resold at a 20% premium compared to prior rates.
2Cloud infrastructure revenue grew 121% year-over-year to reach $7.4 billion.

Amid the global race for advanced computing power, Oracle's latest results reveal a massive backlog of future demand offset by heavy capital expenditure to expand infrastructure. The company reported that Remaining Performance Obligations (RPO) reached a record $664 billion in the first quarter, reflecting a surge in long-term cloud service commitments. However, this aggressive expansion drove capital expenditures to $28.5 billion, resulting in a negative free cash flow of $5.4 billion according to financial reports.

These figures bolster the narrative of record growth in cloud infrastructure revenue, which surged 121% to $7.4 billion, supported by significant pricing power that allowed the company to renew GPU capacity contracts at a 20% premium. The contrast between accelerating revenue and negative cash flow highlights Oracle's strategy of prioritizing long-term cloud dominance over immediate liquidity, positioning it aggressively against major cloud peers per market data.

In terms of market performance, ORCL shares closed at $152.81 on September 11, 2026, after reaching an intraday high of $165.99. Traders are now monitoring the company's ability to convert its massive RPO backlog into positive cash flow, while focusing on support levels near $150.41 given the lack of major tech-specific catalysts in the immediate economic calendar.