Oracle Corporation yesterday, June 10, 2026, presented its fourth fiscal quarter results with figures that, on paper, are outstanding: revenues of 19.18 billion dollars (up 21% year over year), net profit of 4.22 billion and adjusted earnings per share of 2.03 dollars that beat market expectations. However, shares fell almost 9% in after-hours trading when the company announced plans to raise an additional 40 billion dollars in debt and equity to fund its artificial intelligence expansion.
Capital spending that gives no respite
Oracle’s capital expenditure in fiscal 2026 reached 55.66 billion dollars, exceeding its own target of 50 billion and more than double the previous year. For 2027, the company plans an outlay of up to 95 billion, although between 20 and 25 billion would be reimbursed by the customers themselves. Clay Magouyrk, chief executive officer, said the company is bringing almost a gigawatt of computing power online in the current quarter, a figure equivalent to the entire capacity deployed in fiscal 2026. Free cash flow, already negative at 23.7 billion, will remain under pressure until the data centers begin to generate returns.
Dependence on OpenAI and debt worry investors
The backlog of pending orders (RPO) soared 363% to 638 billion dollars, but Bank of America estimates that more than 50% of that figure comes from a single customer: OpenAI. Dependence on the agreement with the startup, signed in September 2025 and worth 300 billion over five years, raises doubts about risk concentration and the real profitability of these mega-infrastructures. The new chief financial officer, Hilary Maxson, also warned that gross margins will shrink in 2027 as the data centers come into operation. In the words of analyst Jacob Bourne (eMarketer): «The demand is real, but the question of financing keeps getting tougher».
