Oracle's capital expenditure for the fiscal year ending May 31, 2026, reached $55.7 billion, exceeding its prior guidance of $50 billion [1, 2, 3]. The company's fourth-quarter capital spending totaled $15.9 billion according to most reports, although some sources cite $16.5 billion [1, 3].

The surge in spending reflects Oracle's aggressive investment in AI cloud infrastructure. The company has expanded its data center capacity by 1.2 gigawatts in 2026, with major projects underway, including facilities for OpenAI, according to Oracle executive Clay Magouyrk [3]. Oracle has secured large AI cloud contracts with customers like OpenAI and Meta, underscoring demand for its infrastructure [3, 4, 5].

Oracle CFO Hillary Barbara Mackson highlighted the strength of its customer contracts, stating the $638 billion remaining performance obligations as of May 31, 2026, rose 363% year-over-year. She said, “这一创纪录的数值，依托客户长期合约支撑，充分体现了市场对人工智能基础设施、云服务的旺盛需求，也让我们对未来营收增长具备极高能见度。” (The record figure, backed by long-term customer contracts, reflects strong market demand for AI infrastructure and cloud services and gives us high visibility into future revenue growth.) [6]

Oracle CFOs emphasized the capital investments are secured by these contracts with fully supported returns [7].

Oracle's Q4 fiscal 2026 total revenue grew 21% year-over-year to $19.2 billion, driven by a 93% jump in cloud infrastructure services revenue to $5.8 billion [2, 3, 4]. However, the cash flow impact has been negative. Fiscal 2026 free cash flow fell to a deficit of about $23.7 billion, a substantial increase from the $394 million deficit in fiscal 2025 [2, 5].

Investors showed concern over the rising capital spending and financing plans. Oracle's stock price dropped over 10% after the earnings release [2, 5].

Looking ahead, Oracle projects net capital expenditure for fiscal 2027 around $70 billion [7, 2, 3, 5]. To support this, it plans to raise $40 billion through debt and equity financing, including a previously announced $20 billion stock issuance plan [2, 3, 5]. Oracle also raised its non-GAAP EPS guidance for fiscal 2027 to $8.05 per share, implying about 18% growth excluding one-time income [2, 4].

Oracle announced a quarterly cash dividend of $0.50 per share to be paid on July 24, 2026 [2, 4].