Oracle rises as AI-fueled backlog growth deflects spending worries

Oracle’s shares gained 3% in early trading on Friday after a $26 billion jump in revenue backlog eased some concerns around its massive debt-driven spending spree, but analysts said the company’s cash flow recovery is still ‌a long way ⁠off.

Roughly ⁠half of the $664 billion in its backlog is expected to convert into sales within the next 36 months ​and much of its newly contracted revenue will not require its own capital, Oracle said, as it relies ​on client prepayments and customers’ own chip supply to build out capacity.