Oracle and Microsoft both reported quarters driven by AI cloud demand, but they fund expansion differently: Oracle is selling stock, taking on debt and relying on customer prepayments, while Microsoft draws on its deep cash pool. Oracle's revenue grew 29.6% to $19.34 billion, led by cloud infrastructure up 121% to $7.39 billion, while Microsoft's revenue rose 17.8% to $90.01 billion. Oracle's disruptor case rests on running its database inside rival clouds and on more than $30 billion of new AI contracts, mostly prepay or bring-your-own-hardware deals. Interest expense rose 55% to $1.4 billion and full-year capex is expected at $90 to $95 billion, with management giving no timeline for positive free cash flow. Over six months, Oracle stock fell 28.22% while Microsoft rose 26.16%.
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Oraclecloud computingartificial intelligenceearnings
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Related tickers and likely impact
MSFT
• NeutralMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $4.0T |
| Close on 10/21/2026 | 532.95 |
| Change that session | +0.20% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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