Oracle targets 10GW of AI compute by FY28 as its backlog hits $664 billion

The database giant plans a roughly tenfold capacity jump and says it can fund most of it without heavy new borrowing

by Diego Almada Lopez

Thu 29 Oct 2026 · 10:51 EDT 3 min read

In Technology

Oracle Corporation (ORCL) price

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Last close: $145
Close-to-close change: +11%
Market cap: $437.1B (shares as of 2026-09-07)
P/E (trailing): 22.7 (EPS to 2026-08-31)
Annual revenue: $67.4B USD (FY ended 2026-05-31) 10-K
Annual revenue growth: +17.3% (FY ended 2026-05-31 vs FY ended 2025-05-31) 10-K
Annual net income: 17,087,000,000 USD (FY ended 2026-05-31, attributable to the company) 10-K
Annual operating margin: 30.6% (FY ended 2026-05-31)
Forward P/E: Unavailable: no dated forecast source

Gloria daily close for session Oct 28, 2026. Market cap and trailing P/E use this close with the SEC share total and trailing diluted earnings, each dated next to its figure. Annual revenue, revenue growth, net income and margin show their own fiscal period and link the 10-K. Current context may postdate this article.

Oracle Corporation and its peers

Company	Price	Market cap	P/E (trailing)	Forward P/E	Annual revenue (USD)	Annual revenue growth	Annual net income (USD)	Operating margin
Oracle Corporation ORCL · Price dated Oct 28, 2026 · tokenized ORCLx	$145	$437.1B	22.7	Unavailable	$67.4BFY ended 2026-05-31 · 10-K	+17.3%FY ended 2026-05-31 vs 2025-05-31 · 10-K	17,087,000,000FY ended 2026-05-31, attributable to the company · 10-K	30.6%FY ended 2026-05-31
Palantir Technologies Inc. PLTR · Price dated Oct 28, 2026 · tokenized PLTRx	$197	$472.9B	168.2	Unavailable	$4.5BFY ended 2025-12-31 · 10-K	+56.2%FY ended 2025-12-31 vs 2024-12-31 · 10-K	1,625,033,000FY ended 2025-12-31, attributable to the company · 10-K	31.6%FY ended 2025-12-31
CrowdStrike Holdings Inc. CRWD · Price dated Oct 28, 2026 · tokenized CRWDx	$267	$273.0B	Not meaningfulLoss, diluted EPS −0.45 to 2026-07-31 · SEC filing	Unavailable	$4.8BFY ended 2026-01-31 · 10-K	+21.7%FY ended 2026-01-31 vs 2025-01-31 · 10-K	−162,502,000FY ended 2026-01-31, attributable to the company · 10-K	−6.1%FY ended 2026-01-31
Shopify Inc. SHOP · Price dated Oct 28, 2026	$168	Unavailable	113.7	Unavailable	$11.6BFY ended 2025-12-31 · 10-K	+30.1%FY ended 2025-12-31 vs 2024-12-31 · 10-K	1,231,000,000FY ended 2025-12-31, attributable to the company · 10-K	12.7%FY ended 2025-12-31

Missing figures stay unavailable. Forward P/E requires a dated source. Annual revenue, revenue growth, net income and margin come from each company's own 10-K, in US dollars, and each row shows that fiscal year. Revenue growth compares the fiscal year with the prior year stated in the same 10-K. Net income is the full year amount attributable to the company, or available to common stockholders where the filing states only that, or consolidated net income. Each row names its basis. Trailing P/E reads "Not meaningful" when the dated trailing diluted EPS is a loss or zero. An operating margin appears only when the filing states both the operating income and the revenue for the same year.

Sources: SEC filings, Gloria daily closes and CoinGecko. Oldest record refresh: Oct 28, 2026, 5:41 PM EDT. Refresh is not a price or filing date. Each row shows its price date and its annual fiscal period. Peers use industry code and company size, or editorial selection. Market cap multiplies that row price by the company share total the latest SEC filing states for every share class together. Trailing P/E divides it by trailing diluted earnings from SEC filings. Rolled earnings per share are approximate because share counts can change between periods. Both appear only when the SEC data carries its date, so they are estimates at one price date, not synchronized filing valuations. Not investment advice.

Oracle plans to grow its compute capacity from about 1 GW in FY25 to 10 GW by FY28. That is roughly a tenfold expansion in three fiscal years.

The timing matters because Oracle is now near the most expensive stretch of the plan. The company expects capital spending to peak over the next two fiscal years.

The numbers behind the buildout

Oracle laid out the roadmap at its October 2026 investor day. The goal is approximately 10 GW of total AI data center capacity by the end of fiscal 2028.

Around 7 GW of that is expected to come from incremental additions over the coming years. The rest reflects capacity Oracle already has in place or under way.

Oracle’s remaining performance obligations, or RPO, reached $664 billion by the end of the first quarter of FY27.

RPO is contracted revenue that customers have committed to but Oracle has not yet booked. That figure grew 3 to 4-fold year over year, with the company attributing the surge to AI contracts.

In Q1 FY27, Oracle brought online 850 MW of capacity, including more than 300,000 GPUs. Those deployments spanned 38 projects across 11 countries. The previous quarter, the company delivered 400 MW, so output more than doubled in a single quarter.

Some quick arithmetic shows why that pace matters. At 850 MW per quarter, adding roughly 7 GW would take a little over eight quarters, which lines up closely with the FY28 window.

How Oracle plans to pay for it

The company had previously announced it secured over 10 GW of power and data center capacity for the next three years. Most of that is financed through partnerships, customer pre-payments, or bring-your-own-hardware arrangements.

That last model is worth a pause. In a bring-your-own-hardware deal, the customer supplies the chips, and Oracle provides the building, power, and operations around them.

Oracle projects capital expenditures will peak during FY27 and FY28. Free cash flow is expected to turn positive in the second half of FY28.

By FY29, the company expects free cash flow to exceed $30 billion.

On the financing front, Oracle estimates it will need at most $20 billion in additional external financing through FY30. Vendor financing, customer contributions, and pre-payments are meant to cover the remainder.

From software vendor to infrastructure landlord

Oracle is moving away from its traditional enterprise software identity and toward hyperscale data center operations, with AI at the center.

Its role in high-profile collaborations such as the Stargate project with OpenAI places it among the key suppliers of GPU and CPU resources for large AI workloads.

The company’s investor relations messaging points to favorable utilization rates and growing multi-service spending from AI-focused customers as the engine for future self-funding.

What this means

For investors, the story now rests on execution more than demand. A $664 billion backlog suggests customers want the capacity. The open question is whether Oracle can deliver it fast enough to convert those commitments into recognized revenue.

The constraints are physical rather than financial. Oracle still has to navigate power procurement and infrastructure build timelines.

There are a few clean checkpoints to watch. The first is quarterly capacity delivery, and whether Oracle holds or improves on the 850 MW pace. The second is whether capex actually peaks in FY27 and FY28 as projected. The third is whether free cash flow turns positive in the second half of FY28, and whether external financing stays within the $20 billion ceiling through FY30.

Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.

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