Zacks.com highlights Oracle’s growing cloud capital spending, positioning the company for future growth. The fiscal 2026 capital expenditure forecast was raised to around $50 billion, reflecting strong demand for AI and enterprise cloud services.

Oracle invested $12 billion in GPU-based infrastructure and data centers in the second quarter of fiscal 2026 to support Oracle Cloud Infrastructure growth. This heavy spending led to negative free cash flow but will drive revenue generation shortly after customer deployments, accelerating revenue growth in fiscal 2027.

Competitors like Amazon and Alphabet are also heavily investing in cloud infrastructure and AI capabilities, with Amazon spending nearly $90 billion in the third quarter of 2025 on AWS and AI investments. Alphabet invested around $24 billion in servers and data centers to support Google Cloud and AI demand, strengthening its position in the AI-first cloud market.

Oracle’s stock has declined 26.3% in the past six months, underperforming the sector and industry averages. However, the stock is trading at a lower forward P/E ratio than the industry average, with a Value Score of D. The Zacks Consensus Estimate for fiscal 2026 earnings suggests 23.05% growth over the previous year.

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