On June 10th, Oracle announced financial results for its 4th quarter and full fiscal year 2026. We delivered a record quarter and the results showed continued acceleration across all our products.
Oracle has been in the database and applications businesses for decades. They continue to impress us because of their ability to continually grow aggregate margin dollars through a combination of durable differentiation and increasing market size. I want to share how we see our infrastructure business in that same category and the evidence the enforces that belief.
Infrastructure built on durable differentiation
Differentiation comes in many forms – technological innovation, supply chain execution, operational ability, and more. We created OCI as the most highly secure, highest performance, most flexible, lowest cost infrastructure available anywhere. We deliver that through innovation across all layers – from deploying the smallest and the largest clouds, to inventing technologies like Acceleron that provide the highest performance and lowest cost networks. We combine the power of OCI and Fusion to implement an incredibly efficient and flexible supply chain. We architect across datacenter design, power distribution, data hall layout and networking to deliver the most efficient and the most flexible infrastructure available anywhere.
Oracle has a long track record of durable differentiation. This is because we know that the real differentiator is the organization, the people, the company itself that can adapt to new requirements, invent solutions, and deliver them to customers rapidly. OCI has been the fastest growing cloud provider for years, and now with AI Infrastructure, we’ve shown to everyone the power of the organization we’ve built, technology we’ve created, and value we’re delivering to customers. OCI is continually releasing new services, hardware, networks and cloud regions to ensure we are always the best place for our customer’s infrastructure workloads.
Enabling scale while growing profitability
Cloud infrastructure has become a very large market because of the ever growing demand for server side computing. AI Infrastructure makes the existing cloud infrastructure market look small. Everything we see shows that this market size is trillions of dollars per year. Combined with our previously outlined 30-40 percent margin profile, OCI should grow into an extremely large and extremely profitable business.
These beliefs are supported by compelling and multiplying amounts of evidence. We signed $67 Billion in AI Infrastructure contracts this quarter. This increases our combination of Bring Your Own Hardware or prepaid customer contracts to $75 Billion, with those contracts having no degradation in margin compared to our other contracts. Customers are showing that they choose OCI to deliver their infrastructure even when they are bring the capital themselves.
Accelerating the delivery of incremental capacity
Design, delivery, and operation of this large-scale infrastructure is extremely demanding. Q4 finalizes an impressive FY26 where we delivered >1.2GW to customers. Our pace of delivery continues to accelerate, with our FY27Q1 delivery approaching 1GW, nearly the same capacity as delivered in all of FY26.
There will be many winners in AI, and our strategy is to have them all as customers. We continue to diversify across our largest customers, with 4 customers contracting for more than $8B this quarter each. Our infrastructure is fundamentally multi-tenant, and we continually allocate capacity between customers. In Q4, 35K GPUs from 59 customers were up for renewal. 49% of the customers renewed for 92% of those GPUs. This doesn’t mean 8% are idle – most of those GPUs were subsequently sold to other customers this quarter. Our global GPU utilization rate is 97.5%.
It’s also clear that AI is here to stay. AI is delivering value on multiple fronts, but the most clear and obvious is Agentic coding. This is an area where we have a front row seat as both a provider and as a consumer. Agentic coding tools have completely changed how Oracle operates and we see no slowdown in our demand for such capabilities. The same is true for all the customers and partners we work with. The demand for AI Infrastructure in this domain alone is enormous, ignoring the many, many other growth areas.
Before I end, let’s look at a summary of our 5 largest sites and the significant progress we’re seeing across all of them.
Abilene, TX – Delivered 42% of total capacity today with the remainder delivering in the subsequent quarters.
Shackelford, TX – Contracted in August 2025. Customer delivery begins in 1H27. 115MW of power capacity is already available, over 1 month ahead of schedule.
Doña Ana, NM – Contracted in September 2025. Customer delivery begins in 1H27. The power design is based on gigawatts of clean, energy efficient Bloom fuel cells.
Saline, MI – Contracted in October 2025. Customer delivery begins in 2H27. The network core is ahead of schedule and delivers at the end of this calendar year.
Port Washington, WI – Contracted in September 2025. Customer delivery begins in 2H27.
It’s an incredible time to be in technology and to have the privilege of doing that at a company like Oracle. It’s especially fun to have an inside view of the birth of a new business that can join the likes of our Applications and Database businesses. Hopefully these beliefs and data points give you some insight into why we are so excited about OCI and where it will take Oracle.