Oracle delivered booming cloud growth in its fiscal fourth quarter, but investors focused on the soaring cost of its AI build-out, sending the stock lower.
Growth vs spending
Cloud revenue jumped 47% to $9.9 billion. However, capital expenditures hit $55.7 billion in fiscal 2026 — above the $50 billion management had forecast in March — and free cash flow came in at negative $23.7 billion. Shares fell about 8.5%.
Chips fuel the build-out
Nvidia and AMD supply the GPUs at the centre of Oracle's cloud expansion. AMD and Oracle announced an agreement for 50,000 GPUs for Oracle Cloud Infrastructure, underscoring the scale of compute Oracle is deploying to win AI workloads.
Sources: Yahoo Finance, Sherwood News.