Oracle Plans $95 Billion Fiscal 2027 Capex, Shares Drop Over 10%
ORCL•Oracle forecasts up to $95 billion in fiscal 2027 capital expenditures—about 40% above the $67.7 billion analyst consensus—and aims to recover $25 billion through customer repayments. Revenue hit $19.18 billion with $2.03 adjusted EPS, but shares slid over 10% following investor concern over the expanded spending and $40 billion financing plan.
1. Fiscal 2027 Capital Expenditure Forecast
Oracle announced it expects to spend as much as $95 billion on capital projects in fiscal 2027—roughly 40% above the $67.7 billion consensus projection—with $70 billion funded directly and $25 billion to be recovered through customer reimbursements.
2. Planned $40B Financing Strategy
The company plans to raise nearly $40 billion in fiscal 2027 through a combination of debt and equity offerings, including a $20 billion at-the-market share sale, and does not anticipate issuing additional debt in calendar 2026.
3. Q4 Earnings and Outlook
In the fourth quarter, Oracle recorded $19.18 billion in revenue and $2.03 in adjusted earnings per share, surpassing analyst estimates and raising its full-year adjusted EPS outlook.
4. Investor Reaction and Margin Guidance
Despite the earnings beat, shares dropped over 10% in premarket trading as investors weighed the expanded spending plans, and the CFO warned that gross margins will step down during the current fiscal year to support accelerated data-center expansion.
