Oracle Cloud Infrastructure (OCI)
IaaS revenue rose 121% to $7.4 billion in Q1 FY2027, while capex reached $28.5 billion and free cash flow was negative $5.4 billion.
The numbers
What it is
Oracle's GPU and CPU cloud for AI training and inference, sold to AI labs and enterprises under multi-year contracts. Growth depends on how fast new data center capacity comes online and gets rented.
Why it matters to the stock. IaaS growth is the main growth driver for the stock. Oracle guides FY2027 total revenue to at least $90 billion, but the build-out is funded with debt and equity, so capex and financing need to keep pace with revenue.
News
Oracle completes $20 billion at-the-market common stock sale
Oracle said in its fiscal Q1 2027 release that it has completed the sale of $20 billion of common stock, before commissions, under its at-the-market programme.
Oracle Q4 FY2026: revenue $19.2B up 21%, non-GAAP EPS $2.11, RPO $638B
Oracle reported fiscal Q4 2026 revenue of $19.2 billion, up 21%, with cloud revenue of $9.9 billion (up 47%).
Department of War names Oracle in classified-network AI agreements
The Department of War announced AI agreements for classified networks with eight companies, including Oracle.
Oracle and AWS announce multicloud interconnect for OCI and AWS customers
Oracle said it will connect OCI to AWS Interconnect-multicloud as an option for joint customers, letting them move data between the two clouds over a managed private link.
Oracle signs deal for up to 2.8 GW of Bloom Energy fuel-cell power
Oracle agreed to buy up to 2.8 gigawatts of fuel-cell power from Bloom Energy for its US AI data centers, with 1.2 GW already contracted for use in 2026 and 2027.
Oracle releases Java 26 with AI and cryptography capabilities for developers
Oracle released Java 26, which it describes as the latest version of the world's leading programming language and development platform.
Oracle lifts FY2027 revenue guidance to $90 billion and guides Q4 cloud growth to 46-50%
Oracle raised its fiscal 2027 total revenue guidance to $90 billion in the March 10 release.
Bloomberg reports 600 MW Abilene expansion for OpenAI dropped
Bloomberg reported on March 9, 2026, citing people familiar with the project, that plans for up to 600 MW of extra capacity near the Abilene, Texas Stargate site were dropped.
Oracle sells $25 billion of bonds on record demand, yet shares slide to a nine-month low
Oracle returned to the US investment-grade bond market on February 2, 2026 with a $25 billion bond sale, the debt half of its $50 billion funding plan.
Oracle shares fall about 3% on the $50 billion funding plan
Oracle shares fell roughly 3% on February 2, 2026, the first trading day after the funding plan was announced.
Oracle plans $45 billion to $50 billion of 2026 funding, about half in equity
Oracle said on February 1, 2026 that it expects to raise $45 billion to $50 billion of gross cash proceeds in calendar 2026.