Why Oracle’s Low-Cost Cloud Changes Everything

Oracle Cloud Infrastructure revenue surged 93% to $5.8 billion in Q4, with GPU utilization at 97.5% and $638 billion in contracted backlog.

Oracle embeds inside Amazon, Google, and Microsoft clouds via 72 Multicloud datacenters, with Multicloud revenue up 404% year-over-year in Q4.

Despite heavy liabilities, operating cash flow grew 54% to $32 billion in FY2026, with most capital already pre-sold through contracted obligations.

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I keep hitting the buy button on Oracle ( NYSE:ORCL ) and I am not planning to stop. The stock is down 27.98% over the last year and 17.74% year to date, and every leg lower has looked like a gift to me rather than a warning. The reason is simple. Oracle has quietly become the cheapest, most flexible place to run AI workloads at scale, and the contracted demand behind that claim is now large enough that I want to own more of it.

CEO Clay McGurk described Oracle Cloud Infrastructure as "the most highly secure, highest performing, most flexible, lowest-cost infrastructure available anywhere." I would normally roll my eyes at that language. The numbers make me take it seriously. Cloud Infrastructure revenue grew 93% in Q4 FY2026 to $5.787 billion. Global GPU utilization sits at 97.5%. When a hyperscaler runs its GPUs that hot, capacity is pulling customers in alongside price.

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Then there is the backlog. Remaining Performance Obligations reached $638 billion in Q4, up 363% year over year, with $75 billion tied to prepaid or customer-supplied GPU arrangements. Customers are handing Oracle cash and, in some cases, their own silicon. That flips the capital story: Hilary Maxson said the structures "enable us to have a lower cash CapEx requirement when we look at how we plan our business" and that "the return on capital is going to be a bit better as well." Management guides infrastructure return on invested capital in the high 20s at steady state.