Oracle stands among five leading hyperscalers with $662B in future data center leases excluded from current GAAP liabilities. As these contracts commence over the next several years, hundreds of billions in lease assets and corresponding liabilities will flow onto Oracle’s balance sheet, pressuring metrics like asset turnover and debt ratios.

Oracle joined top tech peers issuing $120B of bonds last year—nearly three times the decade’s annual average—to finance infrastructure and expansion. This surge in debt increases Oracle’s interest expenses and elevates leverage, raising refinancing risk and potentially denting credit metrics if AI growth or market conditions weaken.