Oracle Forecasts $95B AI Infrastructure Capex, Eyes $40B Financing
ORCL•Oracle forecasts up to $95 billion in fiscal 2027 capital expenditures, $70 billion of which is its own spending and $25 billion expected to be reimbursed by customers, exceeding analyst expectations of $67.7 billion. For Q4, revenue reached $19.18 billion with adjusted EPS of $2.03, topping forecasts.
1. Fiscal 2027 Capital Spending Plans
Oracle plans up to $95 billion in fiscal 2027 capital expenditures, of which CFO Hilary Maxson says $70 billion is the company’s own spending and $25 billion will be repaid by customers, surpassing consensus forecasts of $67.7 billion.
2. Financing Strategy
The company intends to raise nearly $40 billion through a mix of debt and equity sales in 2027, including a previously announced $20 billion at-the-market equity issuance, to support its AI infrastructure buildout.
3. Margin Outlook
Oracle warned that gross margins will "step down" in the current fiscal year as data center expansion accelerates.
4. Q4 Performance Highlights
In the fourth quarter, revenue reached $19.18 billion versus a $19.10 billion consensus, adjusted EPS was $2.03 above the $1.96 estimate, cloud services revenue rose 46% in constant currency to $9.9 billion, and Oracle Cloud Infrastructure revenue jumped 92% to $5.8 billion, while software revenue dipped 2% to $6.8 billion.
