Oracle Corporation is deepening its bet on AI-driven cloud infrastructure, expanding data center capacity across Texas, New Mexico, Wisconsin and Michigan while continuing large-scale funding commitments to support demand for GPU computing. In its fourth-quarter fiscal 2026 earnings, Oracle reported total quarterly revenues of $19.2 billion, up 21% year over year, with total cloud revenues rising 47% to $9.9 billion and Cloud Infrastructure revenues nearly doubling to $5.8 billion. Remaining Performance Obligations surged 363% year over year to $638 billion, with most of the increase tied to large AI contracts, and for fiscal 2027 Oracle guided to total revenues of roughly $90 billion and non-GAAP EPS growth of 18%. However, fiscal 2026 free cash flow was negative $23.7 billion as capital expenditure accelerated, and Oracle raised $43 billion in debt and $5 billion in equity during the year, with plans to raise about $40 billion more in fiscal 2027. Shares of Oracle have lost 3.5% in the past six-month period, underperforming the Zacks Computer and Technology sector's appreciation of 20.4%, and the stock currently carries a Zacks Rank #3 (Hold).
