TL;DROracle spent $55.7 billion on data centres in FY2026, overshooting its own $50 billion guidance. Revenue and cloud bookings beat estimates, but the stock fell 7% after hours on capex concerns and plans to raise another $40 billion.
Oracle reported fiscal fourth-quarter revenue of $19.2 billion, up 21% year on year, and adjusted earnings of $2.11 per share, beating analyst estimates of $19.1 billion and $1.97 respectively. The numbers were overshadowed by capital expenditure that came in well above the company’s own projections.
The company spent approximately $55.7 billion on capital expenditure in the fiscal year ended May 31, exceeding its previous guidance of $50 billion. Oracle now expects to spend roughly $70 billion in net capital expenditure in fiscal 2027, with the reported figure $20 billion to $25 billion higher due to prepayments for components, CFO Hilary Maxson said on the earnings call.
The cloud numbers
Cloud infrastructure revenue, the business most directly tied to AI workloads, grew 93% to $5.8 billion in the quarter. Total cloud revenue including software applications reached $9.9 billion, up 47%. For the full fiscal year, cloud infrastructure revenue hit $18.1 billion, up 77%.
