Oracle just posted what might be its most impressive growth numbers in years. Investors rewarded the company by sending its stock down 12%.
Oracle’s fiscal year 2026 results, released June 10, revealed a business sprinting toward AI infrastructure dominance while simultaneously taking on a debt load that has credit agencies reaching for the warning labels.
The numbers tell two very different stories
Oracle’s remaining performance obligations hit $638 billion as of May 31, 2026, a 363% increase year-over-year, driven almost entirely by large-scale AI cloud contracts. Cloud infrastructure revenue grew 93% year-over-year in Q4 FY2026 alone.
Oracle’s capital expenditures for the fiscal year came in at $55.66 billion, overshooting its own $50 billion target, and produced a negative free cash flow of $23.7 billion for the year. Total debt stood at $129.5 billion as of May 31. Management signaled it plans to raise approximately $40 billion more in debt and equity during fiscal year 2027 to fund continued AI infrastructure buildout.
