Finished analyzing Oracle's financial report.


FY2026 capital expenditures are $55.7 billion, with free cash flow at -$23.7 billion;
FY2027 net cash CapEx guidance is about $70 billion, plus $20-25 billion from customers.
In other words, even as free cash flow is nearly exhausted, Oracle still plans to increase CapEx by almost 40% annually.
At the same time, they plan to issue 20 billion shares and 20 billion dollars in debt.
Honestly, this kind of crazy spending makes me a bit scared.
It gives me the feeling that since they’re already in the pool, might as well go all-in (still the kind of all-in with loans).
But on second thought, if Oracle doesn’t pivot or go all-in, then it’s just a pure SaaS stock leader. 😂.
Maybe in a timeline where Larry isn’t going crazy, ORCL’s stock price would be even worse than today because it would have been crushed as a SaaS stock.
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