"Oracle expects its FY 2026 capital expenditures will be $15 billion higher that previously predicted, as the cloudy database biz invests to accommodate AI workloads. Big Red's reason for the extra spending is growth in its Remaining Performance Obligations (RPO), services its clients have contracted to consume but haven't yet paid for. During the company's fiscal Q2 2026 earnings call, Doug Kehring, Oracle Principal Financial Officer, said, "Given the added RPO this quarter that can be monetized quickly starting next year, we now expect fiscal 2026 capex will be about fifteen billion higher than we forecasted after Q1.""
"Oracle said its backlog increased by $68 billion in the quarter ended Nov. 30, driven by commitments from Meta and Nvidia, and now totals $523 billion. The promised business offers a hedge against Oracle's reliance on OpenAI, which is reportedly aiming to pay $300 billion to Big Red over the next five years despite having never yet shown a profit. The database biz also saw significant growth in its restructuring costs, which reached $406 million for the quarter, an increase of 387 percent year-on-year, but a few million less than the $415 million recognized in fiscal Q1 2026."
"All told, Oracle reported revenue of $16.1 billion, up 14 percent year-on-year, for EPS of $2.10, an increase of 91 percent. By segment: cloud revenue was $8 billion (up 34 percent); cloud infrastructure revenue was $4.1 billion, up 68 percent; cloud application revenue was $3.9 billion, up 11 percent; fusion cloud revenue was $1.1 billion, up 18 percent; and NetSuite Cloud ERP revenue was $1 billion, up 13 percent. Those numbers proved insufficiently robust for investors, whose dissatisfaction led to a share price decline of more than 11 percent in after-hours trading."
Oracle is increasing fiscal 2026 capital expenditures by about $15 billion to expand cloud infrastructure for AI workloads, driven by growth in Remaining Performance Obligations (RPO). Backlog rose $68 billion to $523 billion thanks to commitments from Meta and Nvidia, providing a revenue hedge amid potential large OpenAI spending. Restructuring costs jumped to $406 million related to a $1.6 billion restructuring plan and associated layoffs and severance. Quarterly revenue reached $16.1 billion, up 14% year‑on‑year, with EPS of $2.10 up 91%. Strong cloud segment growth failed to prevent shares falling over 11% after hours.
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