Oracle Corp. reported quarterly revenue of $16.1 billion, a 14% year-over-year increase, but the result came in below analysts’ expectations as the company signaled a renewed push into AI infrastructure with a $15 billion boost to its data-center program for the year.
The company raised its full-year capital expenditures to about $50 billion, a more than 40% increase, with the majority directed at building out data centers to support its cloud services and AI workloads. In the latest quarter, data-center outlays reached $12 billion, above the roughly $8.4 billion consensus.
Oracle’s long-term debt rose to $99.9 billion, up about 25% from a year earlier, underscoring the financing required for its aggressive capacity expansion.
The company is racing to close the compute gap with Google, Amazon, and Microsoft to power the AI models relied on by groups such as OpenAI and Anthropic.
Co-CEO Clay Magouyrk defended the push, saying cloud contracts would quickly add revenue and margins to Oracle’s infrastructure business, while the company kept its full-year revenue outlook at around $67 billion and projected about $4 billion more in revenue in the next fiscal year.
Remaining bookings, or orders for future revenue, rose 15% to $523 billion in the three months through November, aided by deals with Meta and Nvidia. OpenAI has struck deals to spend $1.4 trillion on computing power over the next eight years, highlighting the scale of demand Oracle is aiming to tap into, while investors weigh the financing needs of such commitments.
