NYSEInformation TechnologySoftware - InfrastructureSnapshot 2026-07-07
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Track ORCL free→Oracle grows cloud revenue fast, up 60% in last year. Revenue hit $67 billion in FY26 and guidance rose to $90 billion for FY27. The company expands AI cloud infrastructure with 211 datacenters. Profit beats and strong backlog show solid execution.
Oracle faces risks from high capital spending and debt concerns. AI revenue timing is uncertain and layoffs may slow growth. Legal and worker safety issues could hurt datacenter expansion. Recent sharp stock selloff reflects these worries.
The price is about 1% above our fair value near $140, reflecting roughly 41% revenue growth expected by analysts. Our fair value is well below the Street median, showing a more cautious view on growth and risks.
Breaks if: datacenter regions fail to reach 211 by Q4 FY26
Expand AI cloud infrastructure capacity with new datacenters, leveraging clean energy and autonomous software to support AI training and inferencing workloads.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 5 of last 5 quarters. Oracle expanded datacenter capacity to over 211 live and planned regions, including 72 Multicloud datacenters. Management emphasized clean energy and autonomous software for AI workloads. The scale and buildout confirm delivering on infrastructure expansion priorities.
“Oracle has over 211 live and planned regions worldwide, more than any cloud competitor”
“We are more than halfway through building 72 Oracle Multicloud datacenters”
“Oracle is very good at building and running high-performance and cost-efficient cloud datacenters”
“Oracle has 162 cloud datacenters in operation and under construction around the world”
“Oracle trained AI models and AI Agents will improve scientific discovery and corporate growth”
Breaks if: Capex deviates significantly from $50B in FY26
Execute capital expenditure plan of $50 billion in fiscal year 2026 to support cloud infrastructure growth while managing financing activities prudently.
Stated in 3 of last 3 quarters. Oracle maintained capital expenditure guidance at $50 billion for FY26 to support cloud infrastructure growth. The financials show significant capital spending consistent with this plan, indicating management is executing on the capital allocation priority.
“Capital expenditures of $50 billion in FY26”
“For fiscal year 2026, we expect capital expenditures of $50 billion”
“Capital expenditures of $50 billion in FY26”
Breaks if: cloud revenue falls below $6.2B (2025-Q3 level) next year
Continue rapid growth in Cloud Infrastructure (IaaS) and Cloud Applications (SaaS) revenues, driven by AI demand and large multi-billion dollar contracts, expanding RPO backlog.
Stated as a priority in 6 of last 6 quarters. Cloud revenue grew from $6.2B in 2025-Q3 to $9.9B in 2026-Q4 (+59.7%). Remaining Performance Obligations expanded from $130B to $638B (+390%) over the same period, driven by large AI contracts. Management consistently emphasized cloud growth and RPO expansion, and the financials show delivering strong growth and backlog buildup.
“Record Q4 Total Cloud Revenues $9.9 billion, up 47% USD, and up 46% constant currency”
“Q3 Cloud Revenue $8.9 billion, up 44% USD and up 41% constant currency”
“Q2 Cloud Revenue $8.0 billion, up 34% USD and up 33% constant currency”
“Q1 Cloud Revenue $7.2 billion, up 28% USD and up 27% constant currency”
“Q4 Cloud Revenue $6.7 billion, up 27%”
“Q3 Cloud Revenue $6.2 billion, up 23% USD and up 25% constant currency”
Breaks if: FY27 revenue guidance falls below $67B
Meet fiscal year revenue targets of $67 billion in FY26 and raise guidance to $90 billion for FY27, reflecting strong cloud and AI-driven demand.
Stated in 4 of last 4 quarters. FY26 revenue reached $67.4B, up 17% from $57.4B in FY25. FY27 revenue guidance was raised to $90B from prior $67B. Management has consistently reiterated these targets, and the financials confirm delivering on FY26 and raising FY27 guidance.
“Record FY 2026 Total Revenues $67.4 billion, up 17% USD”
“For fiscal year 2026, we expect revenue of $67 billion”
“Q2 Total Revenue $16.1 billion”
“For fiscal year 2027, we are raising total revenue guidance to $90 billion”
