Oracle Corporation

Management is prioritizing growth capex to secure long‑dated AI infrastructure contracts, lifted the quarterly dividend to 0.50 dollars, and materially slowed buybacks in Q1 FY26 (93 million dollars), which we view as prudent while FCF is negative.

Stock‑based compensation was 4.7 billion dollars in FY25 and 1.1 billion dollars in Q1 FY26; dilution is meaningful but manageable given scale. Historic M&A has been large (e.g., Cerner), and Oracle is now focusing on organic capacity and multicloud distribution.

The allocation mix is coherent with moat‑building, albeit at the cost of near‑term owner earnings.