Overview
- Oracle beat fiscal Q4 earnings estimates but reported a record $638 billion in remaining performance obligations tied to AI cloud deals, with about $75 billion linked to prepaid or customer‑supplied GPUs.
- The company posted $32 billion of operating cash flow for fiscal 2026 but showed negative free cash flow of $23.7 billion because capital spending on data centers surged.
- Oracle disclosed it has already raised roughly $43 billion of debt and $5 billion of equity and plans to raise about $40 billion more for fiscal 2027, including a $20 billion at‑the‑market equity program, and said it now needs roughly an additional $20 billion for AI infrastructure.
- Investors punished the stock after the update, driving a drop as large as about 12% that erased more than $70 billion in market value and shifted the debate from demand to whether Oracle can convert backlog into timely revenue and cash.
- Analysts are split: some keep bullish ratings citing strong contracted demand, while independent observers warn that heavy borrowing, long data‑center leases, and slow cash conversion could strain Oracle if valuations or credit conditions weaken.