Oracle’s Fiscal 2026 Report and Market Impact
Oracle Corporation (NYSE: ORCL) reported fiscal 2026 capital expenditures of $55.7 billion, surpassing the $50 billion forecast, as its shares fell approximately 8.5% after the announcement on Thursday. In the fourth quarter ending May 31, 2026, Oracle’s revenue rose 21% year-over-year to $19.2 billion, driven by a 47% increase in cloud revenue to $9.9 billion. However, free cash flow plummeted to negative $23.7 billion, with management projecting a further increase in spending to about $70 billion in fiscal 2027.
Significantly, remaining performance obligations reached $638 billion, reflecting Oracle’s ongoing contracts with clients, with $75 billion coming from large AI deals. Key hardware suppliers benefiting from Oracle’s cloud expansion include Nvidia, which supplies graphics processing units for Oracle’s Zettascale10 superclusters, and Advanced Micro Devices (AMD), set to launch AI superclusters with an initial deployment of 50,000 MI450 GPUs. Dell Technologies anticipates $60 billion in AI server revenue this fiscal year, bolstered by a record $51.3 billion AI backlog.
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