Oracle Cloud Infrastructure revenue increased 93 percent in the last quarter on the back of growing demand for its AI workloads and database services.

In its Q4 FY2026, Oracle has posted revenues of $19.2bn, an increase of 21 percent Year-on-Year (YoY), and up from $17.2bn in the previous quarter.

For the full year, Oracle had revenue of $67.35bn, a 17 percent growth on FY2025.

The company's remaining performance obligation is now $638bn, up from $553bn at the end of the last quarter. Of this, Oracle expects 12 percent to actualize in the next 12 months and 34 percent between 13 and 36 months.

The company has also signed $67bn in AI infrastructure contracts in Q4, which are primarily bring-your-own hardware or prepaid.

Oracle CEO Clay Magouyrk noted that the company is seeing a strong utilization rate of GPUs at 97.5 percent globally.

He added: "We continue to diversify across our largest with four customers contracting for more than $8bn this quarter. Our infrastructure is fundamentally multi-tenant; we continually allocate capacity between customers. In Q4, 35,000 GPUs from 59 separate customers were up for renewal. Forty nine percent of those customers renewed for 92 percent of those GPUs."

In terms of data center build-out, Oracle brought online 1.2GW throughout the entirety of 2026, and is already anticipating 1GW in the first quarter of FY2027.

Magouyrk took some time to address the company's largest sites currently under construction.

He said: "Abilene, Texas, has delivered 42 percent of the total capacity. An additional 35 percent of capacity will be delivered in the next 90 days, with the remainder delivering in the subsequent quarter.

For the firm's site in Shackleford, Texas, he said: "Customer delivery begins in the first half of calendar year 2027. 115MW of power capacity is already available online, more than one month ahead of schedule.

"If we take a look at Doña Ana County, New Mexico, we contracted this in September 2025. Customer delivery begins in the first half of calendar year 2027 as well ... Saline County, Michigan, we contracted this in October 2025. Customer delivery begins in the second half of 2027. The network core is ahead of schedule and [will be] delivered at the end of this calendar year."

Magouyrk added that Oracle's Port Washington, Wisconsin, data center, contracted in September 2025, will be delivered in the second half of 2027. All five of these data center campuses are set to be leased to OpenAI.

While income continues to rapidly increase, so does expenditure for the company. Capex in FY2026 was $55.6bn, expected to increase in 2027 to between $90 and $95bn.

This is the first earnings call since Oracle hired former Schneider Electric CFO Hilary Maxson in April. With Maxson's arrival, Oracle has made a change to its capex reporting, opting to focus on its "project net cash outlay," which is expected to be $70bn for FY2027. Customer prepayments and timing effects are listed separately, meaning the company's actual capex is likely to be $20-$25 billion higher than the headline figure.

Explaining the decision, Maxson said: "We think this measure is important to better understand our funding needs." The company is expecting to raise $40bn in debt and equity in FY2027, including its "already announced $20bn at the market equity issuance."

Maxson told analysts: "We do not anticipate raising additional debt funding in calendar year 2026."

Earlier this year, the company launched a $25bn bond offering and $20bn equity distribution agreement. Oracle has previously been criticised for its spending practices, with bond purchasers filing a lawsuit just a few weeks prior. The complainants claimed that the bond offering documents did not disclose that Oracle would need additional debt beyond a previous $18bn bond offering. According to the suit, purchasers of the bonds then suffered "significant losses and damages" after media reported on a later $38bn debt offer in October 2025, which then sent the price of the bonds lower.

While the industry in general is dealing with rising component prices, CEO Magouyrk claims Oracle is avoiding the worst effects of the shortages.

"We are selling stuff in a period where we have certainty," he said. "Whether that be certainty because the capacity is already deployed, or we have certainty because we have locked prices across the spectrum, whether it be space and power costs, energy costs, people costs, component costs. When we know those costs, we will then do fixed-price contracts.

"In times when we do not know those costs, because it is too far out in the future or we have too much supply chain risk, we then do not do fixed-price contracts with our customers, and we have a mechanism whereby those costs end up being passed through."

According to Magouyrk, increases in capex are not due to component prices, but are "largely around timing."

Other key metrics for the quarter include operating expenses of $13.05m, and a GAAP operating margin of 32 percent, consistent with the year prior.

For the full year, operating margin was 31 percent, with a GAAP operating income of $20.6bn.

Following the earnings call, Oracle stock dropped 10 percent in extended trading.