Oracle’s remaining performance obligations jumped 438% year-over-year to $523 billion in fiscal Q2 2026, driven by new agreements with Meta Platforms and Nvidia and reflecting strong customer demand for its cloud-based AI databases and autonomous services.

Industry consensus forecasts hyperscaler capital expenditures will reach $667 billion in 2026—consuming roughly 92% of operating cash flow—marking a return to capital intensities not seen since the dot-com era as Big Tech fortifies AI compute, data center capacity and networking.

To meet surging infrastructure needs and preserve scale, Oracle has accessed debt markets to supplement its cash flow, shifting from shareholder distributions to reinvestment in AI infrastructure—a move that may pressure near-term free cash flow but underpins long-term competitive positioning.