Oracle Corporation (ORCL)[Tv]

Key Developments

• Oracle secured a landmark $638 billion in Remaining Performance Obligations (RPO), driven primarily by a $300 billion, five-year AI infrastructure deal with OpenAI, marking the most significant contract in cloud history and signaling structural, long-term demand for its AI-ready data centers.
• Oracle announced a $70 billion capital expenditure plan for FY2027, including a pivotal 2.8-gigawatt power agreement with Bloom Energy to fuel its Project Jupiter AI campus in New Mexico, marking a strategic pivot toward building the physical backbone of the AI era.
• The company revealed a $20 billion equity raise and $20 billion debt issuance—amounting to a $40 billion capital raise—alongside projected $70–95 billion in capex, triggering a 12–13% post-earnings stock sell-off and sparking urgent concerns about financial sustainability despite record revenue.
• Oracle reported fiscal Q4 results with $19.18B in revenue (21% YoY growth) and $2.11 EPS, beating expectations, driven by a 93% surge in cloud infrastructure revenue, while projecting a 36% year-over-year earnings jump for the next fiscal year.
• Negotiations with Microsoft reportedly collapsed over a $3 billion cloud lease, allegedly due to Oracle’s lack of FedRAMP compliance, raising red flags about its ability to compete for high-value government and enterprise contracts.