Oracle Forecasts $95B FY27 Capex After 46% Cloud Revenue Jump
ORCL•Oracle delivered Q4 cloud revenue growth of 46% but announced up to $95 billion in gross capital expenditures for FY2027, with expectations of higher net debt and equity issuance. Shares fell 8% after the company outlined a $20 billion AI expansion and widened spending plans.
1. Q4 Results and Cloud Growth
Oracle reported year-over-year cloud revenue growth of 46% in its latest quarter, underpinning a strong sales performance driven by enterprise adoption of its cloud infrastructure and applications offerings.
2. Expanded AI Investment and Capital Spending
The company announced a $20 billion AI expansion initiative and plans up to $95 billion in gross capital expenditures for fiscal 2027, signaling an aggressive investment cycle that will increase net debt and require additional equity issuance.
3. Market Reaction and Outlook
Oracle shares fell 8% in pre-market trading following the spending announcement as investors weighed potential dilution and questioned whether the higher outlays will translate into sustainable profitability and cash flow.
