Shares of software giant Oracle Corp. dipped during recent trading sessions after the SaaS and cloud computer provider reported its Q4 fiscal year 2026 results. The decline occurred amid investor concerns over the company’s massive capital expenditures required to expand its AI infrastructure, which temporarily pressures gross margins.

Oracle shares were trading down about 5% since the beginning of the current year, while keeping a moderate growth of around 5% over the past 12 months.

The company’s recent stock price at a forward P/E multiple of 23 times gave Oracle the status of an attractive, yet moderately speculative investment due to its growing debt load. To fund its massive data center buildout, the company plans to raise $40 billion through debt and equity sales this year.

Oracle overcame market skepticism regarding demand by demonstrating an explosive 363% jump in its cloud computing backlog to a record $638 billion. Around $75 billion of this amount came from customer prepayments (including OpenAI) for scarce GPUs, helping the company top analyst consensus and boost quarterly revenue by 21% to $19.18 billion.