This report does not constitute a rating action. The company raised its fiscal 2026 capital expenditure (capex) guidance again, this time to $50 billion from the $35 billion it had cited just a quarter ago. Oracle added $68 billion of new remaining performance obligations (RPO) during the quarter (now totaling $523 billion) and believes it can convert the new backlog to revenues sooner, thereby necessitating greater capex in fiscal 2026. We assume heavy OpenAI-related capex in following years, pushing the total spending to $60 billion in fiscal 2027 and $80 billion in fiscal 2028. We forecast Oracle?s free operating cash flow (FOCF) deficit will be $20 billion-$25 billion per year over the next three years. We also adjust the debt
