Oracle Projects 139% Q3 CapEx Surge to $14B after 269% Q1 Jump
Oracle’s Q3 capital expenditures are projected to jump 139% year-over-year to about $14 billion after a 269% surge to $8.5 billion in Q1. The company’s share price has slumped 37% over six months to $150 as investors question its AI data center spend and pending job cuts.
1. Q3 Earnings and Revenue Outlook
For its third quarter, Oracle is expected to report earnings per share of $1.70 on revenue of $16.9 billion, up from $1.47 and $14.1 billion in the same period last year. Cloud revenue is forecast at $8.8 billion, while software sales should contribute $5.9 billion.
2. Capital Expenditure Trends
Oracle’s capital expenditures have surged as data center investments accelerate, rising 269% to $8.5 billion in Q1 and projected to climb another 139% to $14 billion in Q3. Remaining performance obligations have ballooned to $470.7 billion from $130 billion year-over-year.
3. AI Data Center Project Status and Workforce Plans
The planned expansion of Oracle’s AI data center project in Texas is confirmed to proceed, with two buildings operational and 4.5GW of additional capacity leased for OpenAI. The company is also preparing to cut thousands of jobs to help finance its global data center build-out.