11 Sep 2026

Oracle’s AI gamble is starting to generate serious cash

Q1 FY2027 delivered a major datapoint for the AI bull case: Oracle’s trailing 12-month operating cash flow reached $46.9 billion. • +118% year-on-year • +47% quarter-on-quarter • Nearly $15 billion added in one quarter Yes, Oracle’s capital expenditure remains enormous. But that is precisely the strategy: build the computing and data-center capacity needed to serve one of the industry’s largest contracted AI backlogs. The key question was whether this massive infrastructure investment would eventually translate into revenue and cash generation. As capacity comes online and remaining performance obligations convert into sales, the answer is becoming clearer. AI infrastructure is moving from capital expenditure… …to cash flow. $ORCL Source: Steven Fiorillo

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