Oracle's Backlog Now Sits at $553 Billion. Is the Stock a Buy?

2026-03-10 23:53:00 ET

It's been a brutal start to 2026 for Oracle (NYSE: ORCL) investors. Down about 23% year to date and sitting near $149 per share just before its fiscal third-quarter earnings report, the tech stock had taken a massive beating. And its pullback from its 52-week high is even bigger.

The company's narrative has been dominated by two opposing forces. On one hand, Oracle boasts a massive backlog driven by unprecedented demand for artificial intelligence (AI) computing. On the other hand, the company faces a staggering $50 billion in expected capital expenditures in fiscal 2026 to build out the data centers required to begin delivering on its contracts.

So, is this apparent headwind of massive spending actually a problem if it's funding explosive growth, or should investors stay on the sidelines?

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