Oracle just posted a 93% jump in cloud infrastructure revenue, fueled by AI workload demand and database services growth. Its stock dropped 10% in extended trading anyway. That gap between the headline number and the market reaction is really the whole story this quarter.
Total revenue for Q4 FY2026 landed at $19.2 billion, up 21% year over year and a solid step up from $17.2 billion the quarter before. Full-year revenue came in at $67.35 billion, 17% ahead of FY2025. The bigger number, though, is the remaining performance obligation, which now sits at $638 billion, up from $553 billion just one quarter prior. Oracle expects 12% of that backlog to convert into revenue over the next twelve months.
GPU utilization is running at 97.5% globally, CEO Clay Magouyrk told analysts, and four customers alone contracted for more than $8 billion combined this quarter. Oracle signed $67 billion in new AI infrastructure contracts during Q4, most of it structured as bring-your-own-hardware or prepaid deals.
The data center expansion is keeping pace with that demand, at least on paper. Oracle brought 1.2 gigawatts of capacity online across 2026 and expects another gigawatt in Q1 FY2027. Five major campuses are under construction, in Abilene, Shackleford, Doña Ana County, Saline County, and Port Washington, and all five are headed toward OpenAI once they go live.
Here’s where investors started squirming. Capex for FY2026 hit $55.6 billion, and Oracle is guiding that figure toward $90 to $95 billion for FY2027. New CFO Hilary Maxson, who came over from Schneider Electric in April, introduced a different way of framing it: “project net cash outlay,” pegged at $70 billion for FY2027. Customer prepayments and timing effects sit outside that number, so the real capex figure could land $20 to $25 billion above what Oracle is actually highlighting.
To fund all this, Oracle plans to raise $40 billion in debt and equity during FY2027, on top of an already-announced $20 billion at-the-market equity program. Maxson said the company does not expect to raise additional debt in calendar 2026, a statement that lands a bit heavier given the lawsuit currently working through the courts from bondholders who say Oracle understated its borrowing needs in an earlier offering.
