ORCL | Weekly | Haru Insights

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 $20 billion equity raise and plans for $70 billion in capital expenditures through FY2027, underscoring its aggressive transformation into an AI infrastructure backbone—while free cash flow turned sharply negative at -$23.7 billion in FY2026.

Oracle has locked in $638 billion of guaranteed AI revenue, turning its cloud ambitions into a near-monopoly on infrastructural execution, with OpenAI’s deal acting as a force multiplier for long-term growth and market dominance.
The alliance with Bloom Energy for 2.8 GW of on-site power capacity delivers a critical, defensible advantage in bypassing U.S. grid constraints—turning energy security into a moat no competitor can easily replicate.
Despite massive capex and negative cash flow, $32 billion in trailing operating cash flow and $67 billion in AI deals reveal profound underlying strength—proving Oracle is not just scaling, but cementing a self-sustaining infrastructure engine.
The $638 billion RPO confirms Oracle’s transition from a software vendor to the essential spine of global AI deployment—making it not just a playsite for AI, but the foundational layer.
With $70 billion in planned capex, Oracle is actively building the physical backbone of the AI era—positioning itself as the only cloud player with the scale, vision, and execution muscle to outlast the rest.

Oracle Corporation (ORCL)[Tv]