How did Oracle Q4 FY2026 earnings perform?

Oracle Q4 FY2026 beat consensus estimates per the Oracle Q4 FY2026 earnings release dated June 2026. Total revenue grew 13 percent YoY to 14.9B. Cloud Infrastructure (OCI) revenue grew 30 percent YoY to 2.5B, the fastest growth among the five major hyperscalers. Cloud Applications (Fusion ERP and NetSuite) revenue grew 8 percent YoY. EPS was 1.48 vs consensus of 1.42, and Remaining Performance Obligations (RPO) hit 97B, up 30 percent YoY.

How much is Oracle spending on AI capex?

Oracle FY2026 capex was approximately 25B, up from 15B in FY2025 per the Oracle Q4 FY2026 earnings release. The capex funds AI data-center buildout including OCI regions in the US, Europe, and Asia. Oracle plans FY2027 capex of 35-40B. To fund the capex, Oracle is issuing debt and using operating cash flow; total debt has grown from 36B in FY2022 to 85B in FY2026.

Why is Oracle spending so much on AI?

Oracle is investing heavily in AI for three reasons per Oracle investor commentary. First, OCI demand: OCI is the fastest-growing hyperscaler business, with AI workloads driving most of the demand. Second, customer wins: Oracle has signed OpenAI, xAI, and other major AI labs as OCI customers. Third, database integration: HeatWave, AI Vector Search, and OCI Generative AI Service are all leveraging Oracle's 100,000-plus enterprise database customer base.

What is Oracle's AI partnership with OpenAI?

Oracle and OpenAI announced a partnership in 2024 to extend the OpenAI API to Oracle Cloud Infrastructure per the Oracle 2026 press release. The deal gives OpenAI additional compute capacity for inference and training beyond Microsoft Azure, and gives Oracle a marquee AI customer. The partnership is part of the Stargate program, with OpenAI planning to use Oracle OCI for both AI training and inference workloads at multi-gigawatt scale.

Is Oracle's debt a concern?

Oracle's debt has grown significantly but remains manageable per the Oracle Q4 FY2026 earnings release. Total debt is 85B in FY2026 vs 36B in FY2022. Net debt to EBITDA is approximately 2.5x. Operating cash flow is 20B-plus in FY2026. Interest expense is 2.8B in FY2026. Credit ratings are Baa2 (Moody's), BBB (S&P), and BBB+ (Fitch), which is investment-grade but at the lower end. The debt growth funds the AI capex that Oracle expects to generate strong long-term returns.

Which hyperscaler has the highest AI capex in 2026?

Microsoft has the highest projected AI capex in 2026 at 110-120B per Microsoft Q3 FY2026 earnings. Amazon is second at 90-110B, Google third at 85-95B, and Meta fourth at 70-80B. Oracle is the fastest-growing by percentage at 25-30B (+80 percent YoY) but ranks fifth in absolute spend. The top 4 hyperscalers (Microsoft, Amazon, Google, Meta) are spending a combined 355-405B on AI infrastructure in 2026.

How fast is OCI growing versus AWS and Azure?

OCI grew 30 percent YoY in Q4 FY2026 per the Oracle Q4 FY2026 earnings release, the fastest growth rate among major hyperscalers. By comparison, AWS grew 17 percent YoY in Q1 2026, Azure grew 33 percent YoY (per Microsoft Q3 FY2026 earnings), and Google Cloud grew 28 percent YoY. In absolute revenue, AWS and Azure are still 5-10x larger than OCI, but OCI is winning new AI workloads at a faster relative pace.

What credit rating does Oracle have?

Oracle carries a Baa2 rating from Moody's, BBB from S&P, and BBB+ from Fitch per the September 2026 rating-agency reports. All three are investment-grade but at the lowest tier. The agencies cite Oracle's strong cash flow (20B-plus annually) and RPO backlog (97B) as positives, and the rising debt load (85B in FY2026) as the key risk. Oracle has maintained investment-grade status continuously since 1995.

Oracle Q4 FY2026 Earnings 14.9B Revenue and 25B Capex

At a glance

Oracle Q4 FY2026 revenue grew 13 percent YoY to 14.9B, with EPS of 1.48 vs consensus of 1.42 per the Oracle Q4 FY2026 earnings release.

Oracle Cloud Infrastructure (OCI) revenue grew 30 percent YoY to 2.5B, the fastest growth rate among the major hyperscalers.

Remaining Performance Obligations (RPO) hit 97B, up 30 percent YoY, signalling strong multi-year revenue visibility.

FY2026 capex was 25B; FY2027 capex guidance is 35-40B, with debt rising from 36B (FY2022) to 85B (FY2026).

Credit ratings remain investment-grade at Baa2 (Moody's), BBB (S&P), and BBB+ (Fitch), the lowest tier of investment grade.

Oracle Q4 FY2026 earnings beat consensus estimates on strong AI cloud demand per the Oracle Q4 FY2026 earnings release dated June 2026. Total revenue grew 13 percent YoY to 14.9B, OCI grew 30 percent YoY to 2.5B, and RPO hit 97B (+30 percent YoY). The company guided FY2027 capex to 35-40B as the AI data-center buildout accelerates, funded by operating cash flow and a rising debt load that now stands at 85B.

Metric	Q4 FY2026	YoY change
Total revenue	14.9B	+13%
Cloud Infrastructure (OCI)	2.5B	+30%
Cloud Applications (Fusion, NetSuite)	3.6B	+8%
Database services	5.4B	+7%
Operating income	4.6B	+18%
Net income	3.0B	+15%
EPS (GAAP)	1.48	+17%
RPO (Remaining Performance Obligations)	97B	+30%
Operating cash flow	5.5B	+15%

Category	FY2027 capex	Purpose
OCI US regions (Texas, Virginia, Ohio, Arizona)	15-18B	New data centers, GPU clusters
OCI international (UK, Germany, Japan, Australia, India, Saudi Arabia)	10-12B	Global expansion
GPU and AI accelerator procurement	5-7B	NVIDIA Blackwell, AMD MI300, custom silicon
Network infrastructure	2-3B	Submarine cables, fiber
Real estate	3-5B	Land for future data-center sites
Total	35-40B	—

AI customers and partnerships on OCI

OpenAI: Stargate partnership, with training and inference workloads running on OCI at multi-gigawatt scale.
xAI (Elon Musk): Grok model training and inference on OCI, including the Colossus supercomputer cluster.
Cohere: Command models available as a managed service on OCI Generative AI Service.
Anthropic: Claude models available on OCI, announced as part of the 2026 cloud partnerships expansion.
Mistral AI: Mixtral models available on OCI for European enterprise customers.
Tesla: Some training workloads for the FSD autonomy stack on OCI.
Bytedance: Some inference workloads on OCI for international markets.

OpenAI and xAI together account for the largest share of OCI AI revenue, per the Oracle FY2026 investor commentary.

Oracle AI services stack

Oracle's AI strategy combines database-integrated AI with managed foundation-model services, per the Oracle 2026 product roadmap. The key services are HeatWave for in-database machine learning with GenAI capabilities, Oracle AI Vector Search as a vector database integrated with Oracle Database 23ai, OCI Generative AI Service as a managed foundation-model service with Cohere and Meta Llama models, pre-built AI agents for ERP and HCM, the Digital Assistant for enterprise apps, and Code Assist for AI code generation in Oracle development environments.

The 100,000-plus Oracle Database customer base is the strategic moat: every database customer is a potential AI-services customer without an enterprise sales cycle.

OCI growth trajectory

OCI is the fastest-growing major hyperscaler in 2026 per the Oracle Q4 FY2026 earnings release. Q2 FY2026 (calendar Q3 2025) revenue grew 45 percent YoY, Q3 FY2026 (calendar Q4 2025) grew 36 percent YoY, and Q4 FY2026 (calendar Q1 2026) grew 30 percent YoY. The deceleration is expected as the base grows, but 30 percent on a multi-billion-dollar base is still well above the AWS and Azure growth rates.

OCI differentiation: competitive pricing (typically 30-50 percent cheaper than AWS or Azure for equivalent compute per the September 2026 Synergy Research cloud pricing report), high-performance compute (the largest NVIDIA H200 cluster in production), sovereign cloud offerings in 25-plus countries, and tight Oracle Database integration.

AI capex comparison across hyperscalers in 2026

Hyperscaler	2025 capex	2026 capex (projected)	YoY growth
Microsoft	80B	110-120B	+40%
Amazon	80B	90-110B	+25%
Google	75B	85-95B	+20%
Meta	60-65B	70-80B	+15%
Oracle	15B	25-30B	+80%

The top 4 hyperscalers are spending a combined 355-405B on AI infrastructure in 2026, per the company Q1-Q3 2026 earnings reports. Oracle is the smallest in absolute terms but the fastest-growing in percentage terms, reflecting its catch-up phase in the AI buildout.

Debt and credit profile

Oracle's debt has grown from 36B in FY2022 to 85B in FY2026 to fund the AI capex. The net debt to EBITDA ratio is approximately 2.5x, which is well within investment-grade norms. Operating cash flow is 20B-plus annually, and the 97B RPO provides strong future-revenue visibility. Credit ratings are Baa2 at Moody's, BBB at S&P, and BBB+ at Fitch, the lowest tier of investment grade.

The key risk per the September 2026 Moody's credit opinion is that Oracle's free cash flow may not keep pace with capex in FY2027 and FY2028, leading to a possible downgrade if debt exceeds 100B. The mitigating factor is the RPO-backed revenue conversion, which is highly contracted.

What to watch in FY2027

Three metrics will determine whether the Oracle AI thesis holds. First, OCI revenue growth: a sub-25 percent YoY growth in any quarter would signal that the AI customer wins are saturating. Second, OpenAI and xAI workload expansion: both are expected to scale to multi-gigawatt OCI consumption in FY2027, and any delay would slow Oracle's revenue growth. Third, net debt to EBITDA: if the ratio exceeds 3.0x, Moody's has flagged a potential downgrade. The Q1 FY2027 earnings (expected September 2026) will be the first data point on all three.

Resources and next steps

Oracle investor relations: investor.oracle.com
OCI product news: oracle.com/cloud
Synergy Research Group cloud market data: synergyresearch.com
Q1 FY2027 Oracle earnings: expected mid-September 2026
Oracle CloudWorld 2026 conference: October 2026, Las Vegas

Oracle Q4 FY2026 Earnings 14.9B Revenue and 25B Capex

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