Oracle Corporation (ORCL) is significantly increasing its capital spending, raising its fiscal 2026 forecast to approximately $50 billion, an increase of nearly $15 billion from previous estimates. This investment, primarily in GPU-based infrastructure and data centers, aims to meet rising demand for AI and enterprise cloud services. In the second quarter of fiscal 2026, Oracle invested around $12 billion, with expectations of around $4 billion in incremental revenue acceleration starting in fiscal 2027.
Oracle’s capital expenditures are closely linked to its growing backlog, with management indicating that many new bookings can be monetized quickly due to available capacity. The company also competes with Amazon and Alphabet, both of which are heavily investing in cloud infrastructure; Amazon reported spending nearly $90 billion in the third quarter of 2025 for AWS, while Alphabet invested approximately $24 billion in its Google Cloud division during the same period. As of now, Oracle shares have declined 26.3% over the past six months, contrasting with industry growth.
