Microsoft and Oracle end quarter with record backlogs, differing AI risk profiles
Microsoft and Oracle both finished their latest quarter with record backlogs, $678B and $664B respectively. Microsoft’s fiscal Q4 revenue reached $90.01B, up 17.8%, and Azure grew 43%. The quarter produced $19.64B in free cash flow, and Copilot passed 30 million paid seats, indicating AI is monetizing in Office and data centers.
Key points
- Microsoft reported $678B commercial RPO, Oracle $664B, both record backlogs.
- Microsoft revenue $90.01B, Azure grew 43%, free cash flow $19.64B; Oracle cloud revenue 121%, capex $28.50B, free cash flow negative $5.40B.
- Oracle shares fell 54.35% last year, Microsoft gained 1.59%; Oracle trades at 18x, Microsoft at 25x forward earnings.
Oracle’s cloud infrastructure revenue grew 121% and GPU usage hit 97.9%. However, $28.50B of capex turned free cash flow negative at $5.40B, and license revenue fell 15% as older software moves to the cloud. Oracle relies on a few large AI contracts and finished a $20 billion at‑market stock sale.
The author notes Oracle shares fell 54.35% over the past year, while Microsoft gained 1.59%. Oracle trades at about 18x forward earnings versus 25x for Microsoft, reflecting balance‑sheet risk. The analysis prefers Microsoft for steadier AI exposure due to diversified revenue and positive cash flow.
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Microsoft Vs. Oracle: Massive Backlog Fortunes With Vastly Different Risk Profiles
247wallst.com · 25 October 2026
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