Oracle announced plans to raise between $45 billion and $50 billion of gross cash proceeds during calendar 2026 to expand its Oracle Cloud Infrastructure capacity. The financing will be evenly split between debt and equity, with an at-the-market equity program of up to $20 billion and a single senior unsecured bond issuance early in the year. This balanced approach is designed to preserve investment-grade credit ratings while funding accelerated build-out for major AI customers including Nvidia, Meta, OpenAI, AMD, TikTok and xAI.

The company enters fiscal 2026 with $523 billion in remaining performance obligations, up 438% year-over-year, driven by multiyear AI and cloud deals. Oracle reaffirmed full-year revenue guidance at $67 billion and projects third-quarter cloud revenue growth of 40% to 44%, alongside earnings-per-share growth exceeding 20%. Management highlighted that contracted AI workloads already accounted for a majority of new OCI deployments, reflecting high-margin recurring revenue visibility through 2030.

Oracle’s aggressive capex push will drive capital expenditures of roughly $50 billion in 2026, including $248 billion in long-term data center leases. Free cash flow turned negative by approximately $13 billion over the trailing 12 months through November as build-out outpaced operating cash inflows. Investors and credit analysts caution that any delays in data center commissioning, GPU supply constraints or slowdown in customer consumption could magnify leverage pressures and risk credit-rating downgrades, underscoring the critical importance of flawless execution.