Oracle reported fiscal year 2026 results on June 10, showing a 363% year-over-year increase in remaining performance obligations to $638 billion, primarily due to AI cloud contracts. Cloud infrastructure revenue rose 93% in the fourth quarter.
Capital expenditures reached $55.66 billion, exceeding the initial $50 billion target. This resulted in a negative free cash flow of $23.7 billion for the year. Total debt stood at $129.5 billion as of May 31, 2026.
In July 2026, S&P Global downgraded the company's credit rating to BBB-, one level above junk status. To fund expansion in fiscal year 2026, Oracle raised $43 billion in senior notes and $5 billion in convertible preferred stock.
Management plans to raise approximately $40 billion in additional debt and equity during fiscal year 2027 to support AI infrastructure development. Following the earnings release, Oracle shares fell by 12% on June 11.
