Oracle stock faces $95 billion AI spending test

Oracle is raising the scale of its artificial intelligence infrastructure push while adding to the financing burden investors are watching closely. A Reuters report carried by The Economic Times said on Wednesday, November 11, that Oracle expects fiscal 2027 capital spending of up to $95 billion and plans to raise nearly $40 billion through debt and equity financing.

The spending outlook is above the $67.66 billion analyst estimate cited in the report. Chief Financial Officer Hilary Maxson said Oracle expects to fund $70 billion of the spending itself, while a further $20 billion to $25 billion would be tied to customer repayments. The timing of those repayments remains a key question for cash generation.

AI demand meets rising funding needs

Oracle spent $55.66 billion in fiscal 2026, above its $50 billion target. The company is expanding data-center capacity to serve customers including Meta Platforms and OpenAI, positioning Oracle Cloud Infrastructure as a larger competitor to Amazon and Microsoft.

Chief Executive Clay Magouyrk said delivery in the first fiscal quarter of 2027 was approaching one gigawatt, nearly matching the capacity delivered in the previous four quarters combined. Oracle also said a large Stargate data center in Texas, being built with OpenAI and other partners, should be more than three-quarters complete within 90 days. OpenAI said customers can access its coding models through Oracle's cloud.

Contracted demand provides an important counterweight to the funding concerns. Remaining performance obligations, a measure of revenue under contract, stood at $638 billion, above the $592.52 billion analyst estimate cited by Reuters. Oracle expects 12 percent of that contracted revenue, or $76.56 billion, over the next 12 months and another 34 percent, or about $216.92 billion, during the following two years.

Margins and cash flow remain in focus

Maxson said gross margins would step down during the newly started fiscal 2027 as Oracle ramps up data-center projects. The report also quoted an analyst who said demand for cloud infrastructure and backlog were growing quickly, while the funding question was becoming more difficult because capital spending was rising and free cash flow remained negative.

Oracle reported fourth-quarter revenue of $19.18 billion, compared with the $19.10 billion analyst estimate cited in the report. Adjusted earnings reached $2.03 per share, above the $1.96 expectation. Those results support the demand case, but they do not remove the need to finance the infrastructure required to deliver future capacity.

Oracle stock traded at 111.45 euros on Lang & Schwarz at 2:33:57 p.m. CET on Wednesday, November 11, 2026.

Oracle stock trades within the broader U.S. technology market, where AI infrastructure spending remains a central investment theme. Current S&P 500 market reports provide the wider index context.

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