Oracle Corporation (ORCL) reported a 68% increase in cloud infrastructure revenues for Q2 fiscal 2026, reaching $4.1 billion, fueled by a 177% spike in GPU-related revenues as demand for AI computing grows. Total remaining performance obligations soared by 438% to $523 billion during the same period, highlighting new contracts from companies like Meta and NVIDIA.
Despite strong revenue growth, Oracle’s capital expenditures are projected to hit approximately $50 billion in fiscal 2026, up from an earlier estimate of $35 billion and significantly higher than last year’s $21.2 billion. Free cash flow turned negative by about $10 billion in the November quarter, which exceeded analyst expectations. The company’s valuation reflects a trailing P/E ratio of 34.77, slightly above the industry average of 34.19.
In contrast, Microsoft and Amazon are also ramping up AI infrastructure investments, with projected capital expenditures of $120 billion and $125 billion respectively for 2026. These industry leaders maintain stronger financial positions compared to Oracle, which is currently facing challenges in turning its contract backlog into profitable revenue amidst high debt levels.
