Phillip Securities Raises Oracle 2026 Capex Forecast to $50B, Citing OCI and AI Strength

Phillip Securities has revised its outlook for Oracle’s capital spending through 2026, lifting its forecast to $50 billion and signaling renewed confidence in the company’s cloud and AI strategy. The brokerage cited Oracle Cloud Infrastructure (OCI) expansion and the company's push to deliver a full-stack AI platform as primary drivers behind the bigger capex projection.

A higher capital expenditure estimate suggests Phillip Securities expects Oracle to accelerate investment in data centers, networking, hardware and software integration that underpin OCI. For investors, that signals Oracle is preparing to scale capacity and capability to meet rising enterprise demand for cloud services and AI workloads. The analyst note frames the $50 billion figure not as an isolated number but as an endorsement of Oracle’s strategic pivot toward infrastructure-heavy offerings and vertically integrated AI products.

Oracle has positioned itself as a supplier of a tightly integrated technology stack — from cloud infrastructure to applications — which can be an advantage for customers seeking performance and simplified vendor management. Phillip Securities’ updated forecast implies that the firm expects those advantages to translate into sustained OCI adoption and commercial traction for Oracle’s AI efforts over the coming years.

Market implications are mixed. Elevated capex can weigh on free cash flow in the near term but could underpin stronger long-term cloud revenue and competitive positioning if the investments yield incremental market share. Investors typically watch execution risk, capital efficiency and demand trends closely when companies scale infrastructure spending. The brokerage’s upward revision therefore conveys optimism but does not eliminate execution or macro risks.

Analysts and market participants will likely monitor subsequent quarter reports for signs that Oracle is executing on data-center builds, customer migrations to OCI, and commercialization of AI offerings. Key metrics to watch include OCI revenue growth, infrastructure utilization, and margins as capex ramps.

In sum, Phillip Securities’ $50 billion 2026 capex forecast is a noteworthy vote of confidence in Oracle’s cloud and AI roadmap. While the projection highlights bullish expectations for OCI and full-stack AI leadership, outcomes will depend on Oracle’s ability to convert spending into revenue gains and maintain capital discipline amid broader market pressures.