Oracle maintains its capex forecast and reports cloud growth, sending shares up 7%
Many major cloud companies have continued raising their AI spending forecasts as they race to build more data centers and expand AI capacity.
TL;DR
- Oracle's first-quarter capital expenditures reached $28.5 billion, a significant increase from the previous year.
- The company has maintained its fiscal 2027 capital expenditure forecast at $90 billion to $95 billion.
- Oracle reported a 121% growth in cloud infrastructure revenue in its first quarter.
- Shares of Oracle rose 7% following the earnings report.
- Oracle is utilizing financing models like supplier financing and customer prepayments to fund its data center and AI infrastructure investments.
- Unlike some competitors, Oracle is holding its capital expenditure forecast steady amidst a race for AI capacity.