Oracle's AI datacenter splurge gives investors the capex jitters
PAAS AND IAAS
Q4 sales climbed 21%, but Wall Street more interested in $70B buildout bill
Oracle has lifted capital spending plans above analyst estimates and expanded borrowing to chase the opportunity it says exists in building datacenters for AI workloads.
Despite revenue for Q4 (ended May 31) rising 21 percent year-on-year to $19.2 billion, Oracle's share price fell as markets reacted to its increasing capex, as analysts raised concerns about how Big Red would fund the investments in datacenters. Capex for fiscal 2026 reached $55.7 billion, up from $21.2 billion a year earlier.
Speaking to investors, CFO Hilary Maxson said Oracle planned to support its capital investments program by raising around $40 billion in debt and equity in fiscal 2027, including a $20 billion equity issuance already announced.
"We don't anticipate raising additional debt funding in calendar year 2026," she said.
Last year, Oracle raised $18 billion in debt...
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