Oracle cloud hits 51% of revenue; $55.7B capex surge funded by $43B debt, $5B preferred stock

Filed June 22, 2026 · Period ending May 31, 2026 · Compared to 10-K Jun 18, 2025 · ~2 min read

Key Changes

• high

  Cloud revenue crossed 50% threshold (51% of total) in FY26, up from 43% in FY25, driven by 84% contribution from cloud infrastructure vs. 16% from applications. Remaining performance obligations surged $500B to $638B, signaling massive multi-year customer commitments.

  MD&A: Cloud Revenue Mix verify on EDGAR →
• high

  Capital expenditures more than doubled from $21.2B to $55.7B to fund data center expansion, turning free cash flow sharply negative (-$23.7B vs. -$394M). Management expects capex to continue rising in FY27 and beyond.

  MD&A: Capital Expenditures verify on EDGAR →
• high

  Oracle issued $43B in senior notes (vs. $14B in FY25) and $5B in 6.50% mandatory convertible preferred stock to fund infrastructure buildout. Total debt rose 40% to $129.5B; established $20B at-the-market equity program (no shares sold yet).

  MD&A: Financing Activities verify on EDGAR →