"Oracle ( ) announced on Friday that it expects to raise $45 billion to $50 billion in cash this year through a balanced mix of debt and equity financing. The funds will support expansion of its Oracle Cloud Infrastructure (OCI) to deliver on massive contracted demand for AI and cloud capacity from key customers including Advanced Micro Devices ( ), Meta Platforms ( NASDAQ:META ), Nvidia ( NASDAQ:NVDA ), OpenAI, TikTok, and xAI."
"Oracle's aggressive capital plan directly addresses unprecedented demand locked in through multiyear contracts. The $523 billion in remaining performance obligations, boosted by $68 billion in Q2 alone from deals with Meta, Nvidia, and others, equates to roughly eight times the company's annual revenue run rate. This backlog signals strong future revenue visibility, with cloud infrastructure revenue already growing over 34% in Q2 and projected to exceed 70% in fiscal 2026."
Oracle plans to raise $45 to $50 billion in cash this year through a balanced mix of debt and equity financing to expand Oracle Cloud Infrastructure (OCI). The funds will support delivery on contracted AI and cloud capacity demand from customers including Advanced Micro Devices, Meta, Nvidia, OpenAI, TikTok, and xAI. Remaining performance obligations surged to $523 billion in fiscal 2026 second quarter, a 438% year-over-year increase, equating to roughly eight times the company’s annual revenue run rate. Cloud infrastructure revenue grew over 34% in Q2 and is projected to exceed 70% in fiscal 2026. Fiscal 2026 capex guidance is around $50 billion to activate data centers, install GPUs, and scale capacity. The financing mix targets preservation of an investment-grade credit profile, but execution across financing, construction, supply chain, and sustained customer uptake is critical to avoid financial strain.
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