Oracle warns of AI infrastructure spending risks amid record fiscal 2026 revenue

Oracle disclosed that its massive AI infrastructure expansion could bring significant operational and credit risks. The company’s June annual report projects up to $95 billion in capital expenditures by fiscal 2027, citing supply‑chain bottlenecks, rising energy costs and the financial health of AI‑focused customers as potential challenges.

Despite these risks, Oracle reported record full‑year revenue of $67.4 billion for fiscal 2026, a 17 % increase year over year, driven by booming cloud and AI workloads. Fourth‑quarter cloud infrastructure revenue nearly doubled, and the firm delivered more than 1.2 gigawatts of new data‑center capacity. Heavy capex has pressured short‑term free cash flow, but management says the spending positions Oracle to capture market share in the competitive AI‑cloud market.

Leadership highlighted a growing backlog of AI‑related contracts with firms such as OpenAI and Meta, while co‑CEOs Mike Sicilia and Clay Magouyrk manage day‑to‑day operations under chairman Larry Ellison’s strategic direction.