In its Q3 FY2026 10-Q filing, Oracle reported sustained momentum in cloud subscription revenues, which now constitute the majority of its sales base and are recognized ratably over contract terms. This growth is juxtaposed with a significant surge in capital expenditures to expand data center capacity tailored for AI workloads, a trend that continued into fiscal 2026’s year-end annual filing. Oracle’s hybrid business model balances upfront software license fees with recurring subscription and support revenues, engendering considerable recurring revenue streams. However, elevated financial leverage driven by borrowing to fund aggressive AI infrastructure investments poses liquidity and risk considerations going forward.