Markets ORCL JUN 13, 2026

Oracle clears $19.2B in Q4 but $70B capex guide and negative FCF send ORCL down

Cloud infrastructure grew 93% and RPO ballooned to $638B, but a 162% jump in capex and another $40B financing plan rattled shares.

BY HENLEY MARRAST · MARKETS DESK

Oracle posted a record $19.2 billion in Q4 revenue on Tuesday, beat the Street on every headline line, said its backlog had grown 363% year-over-year to $638 billion, and watched its stock fall roughly 10% in extended trading. The number that moved the tape wasn’t on the income statement.

Capex was. Full-year FY2026 capital expenditure landed at $55.7 billion, up 162% and well above the $50 billion Oracle had previously guided and the ~$50.9 billion analysts had modeled. Q4 alone absorbed about $16.5 billion. Operating cash flow rose 54% to a record $32 billion; free cash flow for the year came in at negative $23.7 billion. The gap is the AI buildout, in one line.

Then CFO Hilary Maxson guided FY2027 net capex to roughly $70 billion, with total capex closer to $90 billion once customer prepayments and timing are folded in. Oracle plans to raise about $40 billion in FY2027 through a mix of debt and equity, including a $20 billion at-the-market equity issuance already announced. It’s already the largest non-financial issuer in the Bloomberg US Investment Grade Corporate Bond Index at roughly $117 billion of debt, having added $43 billion of debt and $5 billion of equity in FY2026 alone.

The headline numbers underneath the spend were strong. Cloud infrastructure revenue grew 93% to $5.8 billion, total cloud was up 47% to $9.9 billion, adjusted EPS hit $2.11 against a $1.96 consensus, and RPO of $638 billion blew past the $601 billion StreetAccount mark. Bank of America analysts noted that more than half of that backlog traces to a single customer: OpenAI.

Oracle’s offset to the financing anxiety is that customers are bringing $75 billion of prepaid and customer-supplied GPU hardware into large AI contracts, which the company says “substantially reduces” the capital it has to raise itself. FY2027 revenue is guided to $90 billion, with non-GAAP EPS raised to $8.05.

The market’s read was simpler. A hyperscaler concentrated in one anchor tenant, funding a generational buildout on the bond market, is a structure investors recognize from the late-1990s telecom cycle. They priced it accordingly.

Sources

About the author

Henley Marrast

MARKETS DESK

Henley Marrast covers AI-equity flow, accelerator demand, and earnings prints for AI Sheet Report. She leads coverage of the public AI complex from the New York markets desk, with a focus on the daily tape and quarterly results. She has been writing about technology markets for several years.