Why is Oracle stock down despite record backlog?

Due to concerns over slowing growth, intense competition, and high cloud transition costs, reducing market confidence in converting backlog to profits.

How does Oracle compare to Microsoft in RPO?

Oracle surpassed Microsoft in absolute RPO size in the AI industry.

Oracle Tops Microsoft in AI Backlog, but Stock Still Down 49%

Oracle now holds the largest absolute RPO in the AI industry, beating Microsoft. However, the stock remains down 49% as real risks persist for investors.

June 22, 2026

1 min read

Source: Barchart

Key Numbers

backlog size

largest in AI industry

stock decline

49%

According to a report from Barchart, Oracle (ORCL) has surpassed Microsoft in absolute remaining performance obligations (RPO) in the AI industry, signaling strong demand for its cloud products. Yet the stock remains 49% below its highs.

Details

RPO represents contracted but undelivered services, a key indicator of future revenue. Oracle's record backlog reflects customer confidence in its AI cloud solutions. However, this milestone has not translated into stock gains.

Context

Risks weighing on the stock include slowing revenue growth, intense competition from Microsoft and Amazon, and high cloud transition costs. The market may also doubt Oracle's ability to convert these obligations into profitable revenue.

What This Means for Investors

Despite the record backlog, investors should monitor Oracle's execution efficiency and margin trends. Risks remain, and selling pressure may continue.

Frequently Asked Questions

RPO (Remaining Performance Obligations) is the value of signed contracts not yet delivered, a key indicator of future revenue.

Found this useful? Share it

This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.