Oracle Backs $50 billion CapEx Following Strong Earnings

Oracle Corporation (NYSE:ORCL) is one of the 11 Best Large-Cap Tech Stocks to Invest In

On March 10, Oracle Corporation (NYSE:ORCL) reported its earnings for the third quarter of fiscal year 2026, posting $1.79 per share in adjusted earnings compared to the consensus of $1.70, as per LSEG. Revenue came in at $17.19 billion, compared with estimates of $16.91 billion.

Oracle Backs $50 billion CapEx Following Strong Earnings

CNBC reported that Oracle announced plans to raise between $45 billion and $50 billion in FY2026 and spend on its cloud infrastructure. The company’s results and backlog indicate the growing demand for AI infrastructure. For instance, the company’s remaining performance obligations quadrupled to over $553 billion from a year ago. The company noted that it has capital to support the high demand.

Prior to the earnings, on March 7, Bloomberg reported that Oracle, along with OpenAI, canceled plans to expand its flagship AI data center in Texas. This development occurred over financing and OpenAI’s changing needs. However, Oracle has pointed out that its capital expenditures will reach $50 billion for FY2026.

45 analysts cover ORCL, with 35 rating the stock a Buy, 9 a Hold, and 1 a Sell. The average price target of $240 indicates an upside potential of over 60.50% as of March 10.

Oracle Corporation (NYSE:ORCL) provides information technology-related products and services to enterprises through its main business segments: Cloud and License, Hardware, and Services. The company is based in Austin, Texas, and was founded in June 1977 by Lawrence Joseph Ellison, Robert Nimrod Miner, and Edward A. Oates.

While we acknowledge the risk and potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ORCL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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