By Subhasish Mukherjee
Publication Date: 2026-01-27 17:02:00
oracleORCL’s increasing cloud investments position the company for its next phase of growth by expanding capacity to meet increasing AI and enterprise cloud demand. Management increased its fiscal 2026 capital expenditure forecast to approximately $50 billion, nearly $15 billion above previous estimates, reflecting strong visibility into cloud bookings and future workloads.
In the second quarter of fiscal 2026, Oracle invested approximately $12 billion, primarily in GPU-based infrastructure and data centers, to support the growth of Oracle Cloud Infrastructure. While these high expenses resulted in negative free cash flow in the quarter, the company emphasized that the majority of these expenses are focused on revenue-generating equipment rather than long-term real estate investments. Because the equipment is added late in the data center construction cycle, Oracle can begin generating revenue shortly after customers launch it, shortening the gap between investment and monetization.
These investments are closely…
