Oracle reported fiscal year 2026 capital expenditures of $55.7 billion, consuming roughly 82.6% of its total revenue of $67.4 billion, resulting in a negative free cash flow of $23.7 billion. Revenue climbed 17% year-over-year, but the capex figure exceeded the company’s prior guidance of $50 billion. Oracle has amassed a record $638 billion in remaining performance obligations, with customer prepayments for AI contracts totaling $75 billion. Shares declined in after-hours trading following the earnings release, released on June 10. For fiscal 2027, Oracle is forecasting total capital expenditures of up to $95 billion, with $20 to $25 billion expected to be reimbursed by customers, leaving a net outlay closer to $70 billion, according to CFO Hilary Maxson. To finance this, Oracle plans to raise approximately $40 billion through debt and equity, with the remaining $70 billion representing its own capital contribution. The report highlights a tension between growth narratives and financial fundamentals, as negative free cash flow means Oracle is consuming cash and must tap debt and equity markets, potentially diluting shareholders or increasing leverage.