Oracle $56B-$95B AI infrastructure capex through FY 27, plans FY 27 cap raise, guides lower margins

 

• Oracle detailed $56B-$95B AI infrastructure CapEx through FY 2027, plans FY 2027 capital raise and guided to lower margins.
• Record Q4 revenue $19.2B, +21% YoY, with non-GAAP EPS up 24%.
• Cloud infrastructure revenue grew 93% YoY; cloud applications revenue $4.1B, up 10%.
• Signed $67B AI infrastructure contracts in Q4; prepaid/BYOH commitments now total $75B.
• Remaining performance obligations up 356%, giving strong multi-year revenue visibility from AI and cloud.
• Quartz reported Thursday Oracle's newly awarded U.S. OPM cloud HR contract is roughly $396M over 10 years.
• Database cloud revenue grew 29%; multi-cloud database revenue up 404%, bookings up 325%.
• FY26 gross margin fell about 5 points from data center ramp, as expected.
• FY27 guidance: revenue +34% constant currency, non-GAAP EPS $8.05, +18% constant currency.
• Q1 FY27 guidance: revenue +27–29%, cloud +58–64%, EPS $1.72–1.76, +17–20%.
• Management reconfirmed long-term targets: ~31% revenue CAGR, ~28% EPS CAGR through FY2030.
• Heavy AI data center CapEx and funding needs pressure near-term margins despite strong ROIC economics.
• Main concern: Massive AI infrastructure CapEx and near-term gross margin compression from data center ramp.
• Strong quarter, driven by surging AI infrastructure demand and solid cloud applications growth.

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