- Oracle AI Database@AWS is now available in 22 AWS regions, with new Exadata features and expanded partnerships.
- Oracle’s record RPO backlog reached $638 billion, a 363% jump, while cloud revenue growth accelerated to 93% in the final quarter.
- New healthcare AI tools for coding, dictation, and chart review were introduced, and Oracle dropped a lawsuit in Wisconsin.
- The company is cutting jobs and investing heavily in capex to fund its AI infrastructure, leading to stock market jitters.
Oracle is significantly expanding the reach of its cloud AI service, making it available in 22 AWS regions, and deepening its partnership with AWS. This expansion brings a decisive move to position Oracle at the core of AI cloud, while the company also introduces new services and capabilities to meet enterprise demand.
The company’s latest financial reports show a huge surge in contracted revenue, but this comes with heavy spending and strategic adjustments. Oracle is balancing its growth with careful cost management, as it funds new data centers and introduces AI tools across its portfolio. From healthcare to legal battles and cloud migration, Oracle is at a pivotal stage.
Oracle AI Database@AWS: From GA to Global Reach
Oracle has announced that its Oracle AI Database@AWS is now generally available on Exadata Infrastructure with Exascale performance, allowing customers to deploy Exadata-class workloads in AWS while paying only for what they use. This service brings the power of Oracle’s database and AI features to AWS, including Oracle AI Vector Search, which lets businesses tap into data by meaning and context. The expansion includes 22 AWS regions, offering customers more flexibility for their workload placement.
Oracle and Amazon have also entered a long-term strategic collaboration agreement focused on speeding up migration to Oracle AI Database@AWS. Both companies’ executives said that the move simplifies modernization for enterprises and enables them to combine Oracle data with AWS analytics and AI services. This collaboration is key for customers who want to run Oracle workloads in an AWS environment while lowering costs.
The service now supports a range of important use cases, including sub-200 microsecond application-to-database latency for demanding OLTP workloads, seamless integration with AWS tools like Amazon Bedrock, SageMaker, and zero-ETL with Amazon Redshift, and also improved resilience via Platinum Oracle Maximum Availability Architecture. These features reduce the friction for companies looking to move mission-critical systems.
Record Backlog and a Solid Financial Push
Behind the scenes, Oracle’s financial results reveal a contract backlog that is expanding at an incredible pace. Remaining Performance Obligations (RPO) reached $638 billion in Q4 FY2026, a year-over-year surge of 363%
. That includes significant upfront payments from customers, with four individual deals each exceeding $8 billion, and a total of $67 billion in AI infrastructure contracts. Oracle also said that $75 billion of this is from prepaid or bring-your-own-hardware arrangements, lowering its own capital burden.
Oracle’s cloud infrastructure revenue has been on a fast growth track, accelerating in every quarter of the fiscal year, from 55% to 93% in the final quarter
. Cloud revenue now represents about 52% of total sales, and the company anticipates hitting $90 billion in revenue for fiscal 2027, with a five-year projection of $144 billion for its cloud infrastructure business. This is based on the massive contractual pipeline already in hand.
However, the growth comes with a high price tag. Oracle’s capital expenditures shot from $21.2 billion to about $55.7 billion in a year
, and the firm has run an operating cash shortfall of $23.7 billion. To keep up the build-out, Oracle has raised $43 billion in debt and issued $5 billion in equity. According to the company, the prepaid structure yields returns in the high 20s, which they see as a sustainable model for the future.
Workforce Adjustments in the AI Era
To fund this, Oracle is also shedding employees. Oracle eliminated about 21,000 jobs in the fiscal year ending in May 2026, a 13% headcount reduction
, and it expects up to $2.1 billion in restructuring charges. The company attributed some of those cuts to the adoption of AI technologies. Another round of job cuts is being planned before September 1st, with managers asked to identify staff for potential reductions in some teams.
The market is watching closely as Oracle bets big on AI, and the stock has fallen around 25% this year. The company’s share price reflects investor anxiety over the high debt and capital spending
even as its core business grows. Oracle still generates strong operating cash flow and saw cloud revenue grow 17% over the year, but the balance between short-term profit and long-term infrastructure investment is a delicate one.
Oracle Health Debuts AI Healthcare Capabilities
Outside its cloud, Oracle is also applying AI to healthcare. The company unveiled new features for its Oracle Health Clinical AI Agent, which is now live in the U.S. This AI tool now handles professional fee coding, supports clinician dictation, and surfaces patient context for chart reviews
—all designed to ease administrative work. The agent uses semantic reasoning to collaborate with other AI agents, reducing manual effort while keeping clinicians in the driver’s seat.
Since its initial launch nearly two years ago, the note generation capability has already saved physicians more than 400,000 hours
across U.S. health systems. Oracle Health EVP Seema Verma said these tools help organizations run more efficiently and improve patient care. The company will showcase these advances at the upcoming Health and Life Sciences Summit in Orlando.
Oracle Withdraws Legal Fight in Wisconsin
In a separate matter, Oracle ended its legal challenge against the Wisconsin Public Service Commission over data center financial requirements. Oracle withdrew its lawsuit regarding the credit rating and collateral conditions
for its $15 billion data center campus in Port Washington. The company had argued those rules could cost more than $100 million annually and were unfair.
Now that the lawsuit is dismissed, Oracle is taking a different approach, saying it wants to work with the regulators and community
. The project, which requires 1.3 gigawatts of power, is still moving forward, but it’s facing environmental and economic scrutiny. The PSC and utility groups see the dismissal as a positive outcome, while critics worry about the long-term costs to local ratepayers.
Better Migrations for Oracle Materialized Views
On the technical side, there’s a new solution for customers moving Oracle databases to AWS. Using AWS Database Migration Service (DMS) and Oracle’s Fast Refresh option, teams can now migrate materialized views more efficiently
. Instead of reloading an entire view, the DMS process captures only incremental changes, which reduces time and resource usage significantly—over a 90% reduction in replication time for large datasets.
This approach, which combines Oracle’s native logs with DMS CDC, helps organizations maintain near-real-time sync without the heavy overhead. It’s particularly useful for reporting and analytics that rely on materialized views with millions of rows. The setup includes creating materialized view logs, scheduling fast refresh, and configuring DMS for full load plus CDC
, offering a smoother transition to AWS.
Oracle is thus positioning itself both as a cloud infrastructure leader and as a company that can adapt to the changing needs of its customers, even if it comes with certain trade-offs. With the expansion into 22 regions, the robust backlog, and now a growing focus on AI in healthcare and other sectors, Oracle is demonstrating its ambition. But the heavy price of that ambition—manifested in job cuts and rising debt—means that the company must execute well to prove its long-term value to investors.
