Co-CEOs talk down CapEx concerns as infrastructure build-out rolls on at the end of another strong quarter for Oracle
If you are one of those on Wall Street worried about Oracle’s cash flow coming under pressure from rising CapEx as the firm builds out its data center infrastructure, then yesterday’s Q1 numbers aren’t going to change your mind.
The company reported CapEx of $28.50 billion in the first quarter with more to come, with CFO Hilary Maxson explaining:
Our CapEx for the quarter was $28 billion, leading to negative free cash flow of $5 billion. And our net cash CapEx, so net of prepayments, was $18 billion for the quarter.To note, our CapEx will not be linear throughout the year. We continue to anticipate $90 billion to $95 billion in CapEx for the full year, with not more than $70 billion in net cash CapEx.
But away from the Wall Street short termism, in practice the numbers for the start of the 2027 fiscal year were impressive as Q1...
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