Oracle’s Cloud Revenue Jumps 44% as Debt Swells to $124B
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Oracle reported Q3 cloud revenue up 44% year‑over‑year, now accounting for more than half of total revenue.
- Oracle projected FY2026 revenue of $67 billion and FY2027 revenue of $90 billion, a 34.3% increase.
- Oracle converted $29 billion of new contracts using a bring‑your‑own‑hardware pricing model in the quarter.
- Oracle achieved 32% gross margin on AI capacity deliveries, surpassing its 30% guidance.
- Oracle’s forward price‑to‑earnings ratio fell to 21.7, roughly equal to the S&P 500’s forward P/E.
- Oracle’s long‑term debt rose 41.6% year‑over‑year to $124.72 billion, after raising $30 billion via bonds and convertible preferred stock.
Why it matters: Investors gain a cheaper entry point as Oracle’s forward P/E aligns with the S&P 500, but the surge in debt—up 41.6% to $124.7 billion—means cash‑flow gains will be absorbed, delaying free‑cash‑flow positivity and raising risk for bondholders; shareholders may see limited upside until the debt burden eases.
Ask SkimNews
