Oracle raises $48B via debt and preferred stock to fund $39B capex surge; free cash flow turns negative

Filed March 11, 2026 · Period ending February 28, 2026 · Compared to 10-Q Mar 11, 2025 · ~2 min read

Key Changes

• high

  Capital expenditures exploded 224% to $39.2 billion in nine months (vs. $12.1B prior year) for cloud infrastructure buildout, funded by $43B senior notes issuance and $5B mandatory convertible preferred stock. Free cash flow turned negative at -$24.7B as capex consumed 205% of operating cash flow.

  MD&A: Capital Resources and Liquidity verify on EDGAR →
• high

  Remaining performance obligations surged 324% to $552.6 billion (from $130.2B), driven by "certain significant cloud contracts" providing multi-year revenue visibility. Cloud revenues now represent 50-52% of total revenues, up from 43-44% prior year.

  MD&A: Revenue Recognition and Cloud Growth verify on EDGAR →
• high

  New mandatory convertible preferred stock and $20B at-the-market equity program create dilution risk and subordinate common shareholders. Common stock now ranks junior to preferred for dividends and liquidation ($100K per preferred share plus unpaid dividends paid first).

  Risk Factors: Capital Structure verify on EDGAR →