Oracle Shares Drop 11% Overnight After Forecasting $95B FY2027 Capex; RPO Surges to $638B

According to StockTwits, Oracle shares dropped 11% in overnight trading ahead of Thursday following fourth-quarter earnings, despite the company beating expectations. The company's remaining performance obligation (RPO) surged 363% year-over-year to a record $638 billion, exceeding the cloud backlogs of Alphabet ($627 billion) and Microsoft ($460 billion).

Oracle forecasted capital expenditure of up to $95 billion for fiscal 2027, including $70 billion in capex and $20–25 billion in prepayments for components, up from $55.7 billion spent in fiscal 2026. Q4 revenue rose 21% to $19.18 billion, beating consensus of $19.10 billion, while adjusted earnings per share hit $2.03 versus expected $1.96. The company plans to raise $40 billion in debt and equity this fiscal year to fund the investments.