Oracle’s Quarterly Capital Spending Outpaces Cash Flow by $5.4 Billion

Oracle’s capital expenditures exceeded operating cash flow by $5.4 billion in the quarter ended Aug. 31, as its data center expansion added to the financing demands behind a growing cloud business. For the three months ended Aug. 31, 2026, Oracle recorded $28.5 billion in capital expenditures and $23.1 billion in operating cash flow. That left free cash flow negative by $5.4 billion. The operating cash total included $11.4 billion in customer prepayments with a significant financing component. At quarter’s end, Oracle carried $117.7 billion in noncurrent notes and other borrowings, plus $7.6 billion in current notes and other borrowings. It also had $288 billion in additional lease commitments, substantially all related to data centers. Those leases had not commenced and were absent from its balance sheet and lease maturity schedule.

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