THE BRIEFING
ORACLE AI DEALS SURGE BUT US $ 24BN CASH GAP HANGS OVER SHARES
Oracle faces a stalemate between a record US $ 664bn backlog – driven by US $ 30bn in new AI deals – and a US $ 24bn annual spending shortfall. Company shares are down 55 % from their peak in October 2025 as Wall Street reacts to fiscal 2026 capital expenditures( US $ 55.7bn) outstripping operating cash flow( US $ 32bn). To tackle this gap, Oracle raised US $ 20bn in equity, issued BBB- debt and collected US $ 11.4bn in customer prepayments. In return, cloud infrastructure revenue grew 121 % last quarter, supported by high GPU utilisation and a US $ 300bn contract with OpenAI. Despite this, risks for the company remain. Delivery for Oracle’ s 1.3GW Wisconsin data centre faces regulatory grid delays, and force majeure was declared on its Stargate campus in New Mexico over a delayed gas pipeline. Investors, however, remain optimistic.
CALENDAR
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