ORCL · 10-K · 2026A · Full report

Capital expenditures / datacenter expansion

ORACLE CORP · 2026-06-22 · Importance 58 · Surprise 42

Cloud and software expenses increased materially, with management attributing the constant-currency increase in expenses primarily to a $5.7 billion increase in infrastructure expenses in fiscal 2026 versus fiscal 2025. Oracle expects cloud and software expenses to continue growing in fiscal 2027 and the next few fiscal years as it increases existing data center capacity and establishes data centers in new geographic locations to meet current and expected customer demand. Management ties these infrastructure investments to supporting growth in its cloud infrastructure offering and to developing and delivering second-generation cloud infrastructure. These infrastructure investments are a primary driver of the company’s increased operating expenses.

Key facts

• Cash used for capital expenditures was $55.7 billion during fiscal 2026. source
• Cash used for capital expenditures during fiscal 2026 was $55.7 billion. source
• Cash used for capital expenditures increased from $21.2 billion in fiscal 2025 to $55.7 billion in fiscal 2026 primarily due to the expansion of our data centers. source
• Net cash provided by financing activities increased by $39.2 billion in fiscal 2026 relative to fiscal 2025 primarily due to higher net cash proceeds from short-term financing related to capital expenditures of $1.9 billion. source
• Oracle expects the upward trend in capital expenditures to continue during fiscal 2027 and in the following fiscal years as it increases existing data center capacity and establishes data centers in new geographic locations. source