Oracle has announced plans to increase its cloud infrastructure capital expenditure to $50 billion over the next several years, a near doubling of its prior investment levels. The company is focused on outfitting new data centers with GPU-rich hardware to support AI workloads for enterprise customers. Oracle CTO Juan Loaiza stated that the expanded build-out will allow the firm to target sustained annual cloud revenue growth of 30%+, compared with the mid-20% range seen over the past year. Management projects the new GPU clusters will begin contributing to revenue in the second half of fiscal 2027 and expects gross margins on cloud services to improve by 200 basis points as utilization ramps.

Oracle reported that its remaining performance obligations (backlog) swelled 438% year-over-year to $523 billion at the end of Q2 FY2026, driven largely by new commitments from hyperscale AI customers including Meta Platforms and Nvidia. That backlog represents over three years of current run-rate revenue, assuming the company recognizes $16 billion per quarter as seen in Q2. CFO Safra Catz noted that while converting the backlog into cash requires continued CapEx investment, it provides multi-year visibility into subscription and infrastructure services revenue streams, which now account for 65% of total bookings.

Recent SEC filings show Belpointe Asset Management reduced its Oracle position by 18.2%, selling 5,327 shares to hold 23,993 shares, representing about $6.7 million at the time of the filing. Vanguard Group increased its stake by 2.1% to 164.3 million shares, while State Street raised its holdings by 1.7% to 73.5 million shares. Together, institutional investors now own 42.4% of Oracle’s outstanding share count. The mixed trading activity followed Oracle’s December earnings beat—EPS of $2.26 versus consensus of $1.64—and the board’s decision to maintain a $0.50 per share quarterly dividend, reflecting a 37.6% payout ratio.

Oracle is pursuing FedRAMP Moderate authorization for its Primavera Cloud platform, aiming to secure multi-year contracts with U.S. federal agencies. The certification process, expected to conclude by Q4 FY2026, would allow Oracle to compete for workload migrations worth an estimated $4 billion annually in the defense, civilian and intelligence sectors. Government customers have historically allocated over 60% of federal cloud spend at Moderate or higher security levels. Oracle executives believe the FedRAMP accreditation will strengthen the company’s position against AWS and Microsoft Azure in regulated markets.