Oracle Accelerates Towards Major AI Contracts, Appoints New CFO

Oracle Corporation reported double-digit growth in its Fiscal Year 2026 third-quarter results, driven by strong demand for cloud and AI infrastructure.

Total revenue rose 22% year-over-year to $17.2 billion (approximately ₩22 trillion). Cloud revenue jumped 44% to $8.9 billion (about ₩12 trillion), while cloud infrastructure revenue surged 84%. Large AI-related contracts propelled remaining performance obligations to $553 billion (roughly ₩720 trillion), a 325% increase from a year earlier.

To expand its data-center footprint, Oracle plans to raise up to $50 billion (around ₩65 trillion) in capital and has already secured $30 billion via corporate bonds and convertible preferred securities. The company set targets of $67 billion in revenue and $50 billion in capital expenditures for FY2026, and $90 billion in revenue for FY2027. It also reported $23.5 billion (about ₩30 trillion) in trailing-12-month operating cash flow, declared a $0.50 per-share cash dividend, and appointed Hillary Mackson as CFO effective April 6.

Following the earnings release, investors noted Oracle delivered its best quarter in 15 years, with revenue and cloud infrastructure growth exceeding expectations. However, concerns remain over heavy AI data-center investments, which drove free cash flow down to approximately –$24.7 billion (around –₩30 trillion) in the most recent quarter, and the resulting debt burden.

Several research reports now spotlight Oracle as a key provider of large-scale cloud and AI infrastructure amid the generative AI boom. They cite the $553 billion backlog as a critical indicator supporting future revenue growth.

Originally known for its database and enterprise-software offerings, the U.S. tech company is now competing globally in the infrastructure cloud market alongside Amazon Web Services, Microsoft Azure, and Google Cloud with its Oracle Cloud Infrastructure platform.

The cloud and AI infrastructure sector is highly capital-intensive, requiring substantial initial investments and power costs. Interest-rate levels, economic conditions, and the sustainability of AI demand are all major factors influencing companies’ investment plans and financial performance.