JPMorgan: Oracle's backlog increases by 26 billion, funding path remains questionable

TechFlow News, according to TechFlow Research, in a research report dated September 11, 2026, JPMorgan notes that Oracle's remaining performance obligations (RPO) for Q1 FY27 reached $664 billion, up 46% year-over-year and $26 billion quarter-over-quarter. Cloud infrastructure (IaaS) revenue was $7.4 billion, up 121% YoY. Total revenue came in at $19.35 billion, up 30% YoY, beating market consensus. Earnings per share were $1.92, exceeding the market consensus estimate of $1.75. JPMorgan reiterates its Overweight rating with a $200 price target.

JPMorgan believes that new AI cloud contracts this quarter exceeded $30 billion, primarily signed under upfront payment or bring-your-own-hardware structures, requiring no additional cash from Oracle. Full-year 2027 revenue guidance is at least $90 billion, with EPS guidance at $8.10, both above market consensus. Investors continue to debate whether Oracle can navigate past the capex peak after FY28, and whether tightening credit market access will force the company to slow down construction. The report highlights downside risks including customer concentration, access to funding, and capacity delivery.