Oracle raises AI spending estimate, spooks investors

Oracle expects its FY 2026 capital expenditures will be $15 billion higher that previously predicted, as the cloudy database biz invests to accommodate AI workloads.

Big Red’s reason for the extra spending is growth in its Remaining Performance Obligations (RPO), services its clients have contracted to consume but haven’t yet paid for.

During the company's fiscal Q2 2026 earnings call, Doug Kehring, Oracle Principal Financial Officer, said, "Given the added RPO this quarter that can be monetized quickly starting next year, we now expect fiscal 2026 capex will be about fifteen billion higher than we forecasted after Q1."

Oracle said its backlog increased by $68 billion in the quarter ended Nov. 30, driven by commitments from Meta and Nvidia, and now totals $523 billion. The promised business offers a hedge against Oracle's reliance on OpenAI, which is reportedly aiming to pay $300 billion to Big Red ...