Oracle Corporation increased its fiscal 2026 capital expenditures by 162 percent to $55.7 billion to expand artificial intelligence infrastructure.
The spending heavily pressured its free cash flow despite record-high cloud revenues announced on June 10, 2026.
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According to financial reports, Oracle generated a negative free cash flow of $23.7 billion for the fiscal year.
Its operating cash flow reached a record $32 billion.
To fund the aggressive datacenter expansion, management raised $43 billion in debt and $5 billion in equity during fiscal 2026.
The company plans to secure approximately $40 billion more in fiscal 2027.
Cloud Business Acceleration
Oracle's underlying cloud business experienced significant acceleration. Total cloud revenues rose 47 percent in the fourth quarter to $9.9 billion.
Cloud Infrastructure revenues nearly doubled by 93 percent.
Remaining Performance Obligations surged 363 percent year over year to $638 billion, bolstered by a $300 billion OpenAI contract.
Market data from Trefis indicated that Oracle stock entered a support zone between $141.10 and $155.96.
The stock had declined 21.9 percent over a six-month period.
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Historical trends show that Oracle stock previously generated substantial gains after hitting these specific levels.
For example, on September 10, 2024, the stock returned 23.7 percent in 72 days.
Other rebounds include a 21.1 percent return in 105 days from January 13, 2025, and a 122.8 percent return in 127 days from May 6, 2025.
On March 31, 2026, the stock returned 69.3 percent in 62 days.
The massive capital allocation toward AI infrastructure places Oracle alongside other technology giants facing intense investor scrutiny.
Microsoft guided its 2026 capital expenditures toward $190 billion, while Alphabet raised its outlook to between $180 billion and $190 billion.
For fiscal 2027, Oracle management projected total revenues of $90 billion and an 18 percent growth in non-GAAP earnings per share.
First-quarter cloud revenue growth is estimated to reach between 58 percent and 64 percent.
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The company stated it does not plan to issue additional debt during the remainder of calendar 2026.
