Oracle Corporation (ORCL) reported fiscal second-quarter revenues of $16.1 billion for 2026, marking a 14% year-over-year growth, with cloud infrastructure revenues increasing by 68% to $4.1 billion. The company saw a significant uptick in remaining performance obligations, which reached $523 billion, bolstered by $68 billion in new commitments from major clients such as Meta and NVIDIA. However, this expansion comes with a hefty capital expenditure forecast of approximately $50 billion for fiscal 2026, more than double the $21.2 billion spent in fiscal 2025, leading to a negative free cash flow of $10 billion in the quarter due to infrastructure buildout costs.
In addition to its strong financials, Oracle announced critical strategic initiatives, including the launch of the Oracle AI Database 26ai, and a partnership with the U.S. Department of Energy to enhance AI computing efforts. The company operates 147 live customer-facing regions and is building 72 multicloud data centers across major platforms like Amazon, Google, and Microsoft. This multicloud database segment grew 817% in the second quarter, positioning Oracle favorably in the competitive landscape of cloud infrastructure providers.
For the upcoming fiscal third quarter, Oracle anticipates total revenue growth of 19% to 21% and non-GAAP earnings per share between $1.70 and $1.74. Its full-year revenue expectation remains at $67 billion. Despite strong growth signals, the substantial investments required could impact near-term cash flow, raising concerns for investors amid shifting market dynamics.
