Oracle’s AI Bet Deepens as $50 Billion Capex Plan Tests Balance Sheet

Investors weigh rising credit risk as Oracle pursues a massive buildout to meet accelerating AI demand.

Overview

Oracle guided fiscal 2026 capital spending to $50 billion as finance chief Doug Kehring detailed plans to rapidly expand Oracle Cloud Infrastructure for AI workloads.
FQ2 results showed total revenue of $16.1 billion, cloud revenue up 33% to $8 billion, OCI up 66% to $4.1 billion, and GPU-related revenue up 177%, with guidance for FQ3 cloud growth of 37%–41%.
Shares have fallen about 32% this quarter, and credit default swap prices have risen as the company navigates heavy funding needs and an $18 billion bond sale completed in September.
Insider reporting cites extensive lease commitments and questions over Oracle’s capacity to support large AI customers, including a reported but unconfirmed multiyear OpenAI spending agreement exceeding $300 billion.
Analyst views remain split, with D.A. Davidson warning about pressure on Oracle’s investment‑grade rating and potential contract restructuring, while Phillip Securities kept a Buy rating and lifted its 2026 capex outlook to $50 billion as some forecasts now contemplate even higher spending.