Oracle sees FY 2026 capital expenditures of $50B

Oracle Corporation (NYSE: ORCL) has outlined a $45–$50 billion capital expenditure plan for fiscal year 2026 to fund the expansion of its Oracle Cloud Infrastructure (OCI) business, according to a February 1, 2026, press release. The company aims to raise funds through a balanced mix of debt and equity financing to maintain its investment-grade balance sheet. Approximately half of the proceeds will come from equity-linked instruments, including mandatory convertible preferred securities and a newly authorized $20 billion at-the-market equity program. The remaining half will be secured via a single issuance of investment-grade senior unsecured bonds early in 2026.

Recent developments, however, suggest Oracle is recalibrating its AI infrastructure strategy. A planned AI data center expansion in Abilene, Texas, co-developed with OpenAI, has been canceled due to financing and scope disagreements. The company has also announced large-scale layoffs and cost-cutting measures to manage financial pressures from rapid AI infrastructure investments. Despite this, Oracle's core 4.5 gigawatt commitment to OpenAI remains intact, with capacity now being redirected to other Oracle data centers.

Oracle's stock (ORCL) closed at $152.96 on March 7, 2026, reflecting a 21.8% year-to-date decline but strong multi-year gains. Investors are closely monitoring how the company balances AI infrastructure spending with profitability, particularly as it navigates project cancellations, legal scrutiny, and evolving partnerships with hyperscalers like Meta and Nvidia. The firm's FY 2026 financial strategy underscores its focus on converting a large AI-related backlog into revenue while managing capital discipline amid shifting market dynamics.