Look, Oracle's remaining performance obligations — contracted future revenue not yet recognized — reached $638 billion at fiscal year‑end May 31 2026, up 363% from $137.8 billion a year earlier and $552.6 billion a quarter earlier. Management calls it exceptional visibility, backed by long‑term contractual commitments. Conversion is long‑dated: about 12% in the next 12 months, 34% in months 13‑36, 34% in months 37‑60 and roughly 20% beyond. About 12% now sits in the prepaid/bring‑your‑own‑hardware AI cohort, and recognized revenue remains diversified with no single customer above 10%.
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Let me give you the funding picture in order, because it is the story. Remaining performance obligations closed the year at $638 billion, up 363% - years of contracted revenue in the backlog, and cloud infrastructure grew 93% in the quarter. Now the sign, stated flat: reported capex ran $55.7 billion, up 162%, and against $32 billion of operating cash that put free cash flow at negative $23.7 billion. The offset is a structure, not a nicer number - customers prepay and bring their own hardware, so what's on our books understates what's being built in our name. And the backlog leans on certain significant contracts I do not name. What that customer funds itself, and whether its demand holds, is the part I can't hand you today.
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Look, multicloud database revenue grew 404% year over year in the fourth quarter, on a base we call very early days. We buy merchant silicon — NVIDIA and AMD GPUs, ARM CPUs — rather than designing a captive accelerator, and compete on multicloud neutrality: our database runs inside Azure, Google Cloud, and AWS, just to name a few. GPU and CPU supply continues to exceed nothing and fall short of demand. We delivered more than 1.2 gigawatts in fiscal 2026 at 97.5% global GPU utilization. Full stop.
Look, we fund the build off our balance sheet: fiscal 2026 raised about $34 billion — $28.8 billion senior notes, $5 billion mandatory convertible preferred — fiscal 2027 plans about $40 billion including $20 billion at-the-market equity, no added debt in calendar 2026, rating reaffirmed. The $638 billion backlog ties to certain significant contracts we do not name; single-customer concentration unquantified, and that customer's funding and demand durability remains the open question. Full stop.
Look, remaining performance obligations — contracted future revenue not yet recognized — reached $638 billion at fiscal year-end May 31, 2026, up 363% from $137.8 billion a year earlier and $552.6 billion a quarter earlier. Management calls it exceptional visibility, supported by long-term contractual commitments. Roughly 12% of the backlog is the prepaid, bring-your-own-hardware AI-infrastructure cohort. The surge ties to certain significant contracts we do not name. Full stop.
Look, the backlog: $638 billion remaining performance obligations at fiscal year-end May 31, 2026, up 363% from $137.8 billion a year earlier and $552.6 billion a quarter earlier. Management calls it exceptional visibility, all supported by long-term contractual customer commitments. The revenue conversion is long-dated — about 12% within 12 months, 34% in months 13-36, 34% in months 37-60, roughly 20% beyond. About 12% of the backlog is now the prepaid, bring-your-own-hardware AI-infrastructure cohort. Recognized revenue diversified — no customer 10%+ in fiscal 2026, 2025,
Look, in fiscal 2026 we raised about $34 billion — $28.8 billion senior notes and a $5 billion mandatory convertible preferred — and we plan about $40 billion in fiscal 2027, including a $20 billion at‑the‑market equity program, with no additional debt slated for calendar 2026 and our investment‑grade rating reaffirmed. The durability question remains: the $638 billion backlog ties to certain significant contracts we do not name, and exposure to a single unnamed AI customer’s funding and demand is an open question. Full stop.
Look, remaining performance obligations — contracted future revenue not yet recognized — reached $638 billion at fiscal year-end May 31, 2026, up 363% from $137.8 billion a year earlier, $552.6 billion a quarter earlier. Conversion: ~12% next 12 months, ~34% months 13-36, ~34% months 37-60, ~20% beyond. Recognized revenue diversified — no customer 10%+ in fiscal 2026, 2025, 2024 — but the backlog surge ties to certain significant contracts we do not name. Today's billed base broad; tomorrow's backlog narrow. Full stop.
Look, we are funding the datacenter build increasingly off our own balance sheet. In fiscal 2026 we raised about $34 billion — $28.8 billion senior notes and a $5 billion mandatory convertible preferred — and we plan about $40 billion in fiscal 2027, including a $20 billion at‑the‑market equity program, with no additional debt slated for calendar 2026 and our investment‑grade rating reaffirmed. The $638 billion backlog ties to certain significant contracts we do not name, and exposure to that unnamed AI customer’s funding and demand remains an open question. Full stop.
Look, multicloud database revenue grew 404% year over year in the fourth quarter, on a base we call very early days. We deploy NVIDIA and AMD GPUs and merchant ARM CPUs rather than designing a captive accelerator, and compete on multicloud neutrality — running our database inside Azure, Google Cloud, and AWS, just to name a few — plus speed of capacity build. We delivered more than 1.2 gigawatts in fiscal 2026 and report 97.5% global GPU utilization. Our Dona Ana County site is designed around gigawatt-scale Bloom fuel cells. Full stop.
Look, capital spending is the steepest ramp among large AI-datacenter spenders: property and equipment purchases went from $6.9B in FY24 to $21.2B in FY25 to $55.7B in FY26, up 162%. Against $32B operating cash, FCF was negative $23.7B. Part of the build is customer-funded — $75B cumulative in prepay and bring-your-own-hardware, $67B of AI-infrastructure contracts in Q4 at similar or better margins — so reported capex understates capacity in our name. FY27 net cash outlay guided ~$70B, reported ~$90-95B once $20-25B of customer prepayments and third-party timing added back. Full stop.
Remaining performance obligations — contracted future revenue not yet recognized — reached $638 billion at fiscal year-end May 31, 2026, up 363% from $137.8 billion a year earlier, $552.6 billion a quarter earlier. Management calls it exceptional visibility, all supported by long-term contractual customer commitments.