– Since the end of the previous quarter, Oracle has shipped 850 megawatts and more than 300,000 GPUs. That’s nearly three times the total for the previous quarter and represents 73% of the total for the entire 2026 fiscal year. At the Abilene site, six of eight buildings have been completed. It now takes only 24 hours.
– The backlog stands at $664 billion, an increase of $26 billion. The new contracts cost Oracle no additional cash, because customers pay in advance, provide their own hardware, or suppliers handle the financing. Additional investments are still required, however. About half of the order backlog is expected to be fulfilled within 36 months be converted into revenue.
– All GPUs whose contracts expired during the quarter were re-leased at a 20% premium. Most of them are four years old or older. Co-CEO Clay Magouyrk reports a utilization rate of 97.9%.
– Revenue rose 30% to $19.3 billion, while cloud infrastructure segment by 121% to $7.4 billion , following 93% in the previous quarter. The operating margin remained at 42%.
– Operating cash flow of $23 billion was capital expenditures of $28 billion . This results in a free cash flow of −$5 billion. CFO Hilary Maxson says that once a project is up and running, it converts nearly all of the net income into free cash flow. The business then largely finances itself.
– Oracle passes on the full cost of more expensive components to its customers. Where demand exceeds supply, prices simply rise, according to Magouyrk. He does not see this as weighing on the gross margin.
– The annual forecast has been raised to at least $90 billion in revenue and $8.10 in earnings per share. Capital expenditures remain at $90–95 billion, or a maximum of $70 billion after deducting prepayments. The $20 billion capital increase has been completed.
