ORACLE CORPORATION

Red flags

• Oracle had $13.309 billion of unconditional purchase and other obligations as of May 31, 2026, primarily related to data-center power arrangements; $7.533 billion falls due thereafter, creating long-duration demand and capital-allocation exposure.
• Large, long-term customer cloud arrangements require significant infrastructure investment, but economic returns depend on customer demand and customers meeting contractual obligations; the filing gives no customer-level concentration offset beyond stating that no single customer represented 10% or more of revenue.
• The substantial majority of hardware manufacturing, assembly, and delivery is outsourced to a reduced number of third-party partners, creating operational concentration even though no supplier names or percentages are disclosed.
• Oracle highlights potential dilution from conversion or stock dividends on its 6.50% Series D Mandatory Convertible Preferred Stock and issuance under its At-the-Market program, but the excerpt does not quantify the potential share count.