Oracle’s Remaining Performance Obligation jumped 438% to $523 billion in Q2 FY2026, while capital expenditures in the first half reached $20.54 billion. Q1 capex of $8.5 billion consumed more than 100% of operating cash flow, driving free cash flow to a negative $362 million.

Power infrastructure at the Stargate data center will take 12-18 months to provision, prompting OpenAI to halt its expansion so that next-generation Vera Rubin chips can be deployed rather than current Blackwell hardware that would be obsolete upon facility completion.

Oracle’s reliance on a concentrated set of hyperscaler contracts leaves it vulnerable to delays, as fixed capex obligations contrast with a quarterly revenue base of roughly $16 billion. This creates a higher execution risk compared with larger peers that can absorb single-contract shifts without material impact.