Oracle July 27

Rating Company Date 27 July 2026 Buy Oracle North America Reuters Bloomberg Rating Buy ORCL.N ORCL US Price target (USD) 300.00 United States Price at 24 Jul -week range 328.33 – 2.53 TMT Software Valuation & Risks

Highlights from Meetings with CFO Brad Zelnick We recently hosted Oracle CFO Hilary Maxson & SVP of IR Ken Bond for a series Research Analyst of investor meetings. Discussions were heavily focused on AI infrastructure, funding strategy, project execution, capital intensity, and Oracle's path to Bhavin Shah, CFA balancing rapid growth with an investment grade credit rating. We came away Research Analyst with the view that management firmly intends for Oracle to be a market leader in AI infrastructure, leveraging a customer focused model and its technology Daniel Knauff heritage, while also acknowledging the financial constraints in this early heavy Research Associate investment phase require a disciplined approach to capital allocation and pacing right now. Herein, we share our key takeaways from the meetings: Yash Kejriwal Execution & Buildout. Oracle's confidence in executing its AI infrastructure Research Associate buildout was a focus, and an area where Ms. Maxson's prior experience and fit for the current moment stood out. She highlighted that, by nature large infrastructure projects (not just data centers) attract outsized public scrutiny and news flow given the politics involved, but Oracle believes most of its major development sites have already passed the highest-risk phases associated with land acquisition, permitting, power procurement and initial financing. Previous commentary that projects are materially on track was reiterated. This includes New Mexico where the company and its partners had already been working on a credible alternative to routing a portion of the gas pipeline supplying the site through state land. It was noted that they are still waiting for a final air permit expected this fall here; the timing of receipt wouldn't impact the start-up date but is needed to ramp the site to full capacity. While individual project delays always remain possible, any that could arise from this point were characterized as likely to be more site-specific execution issues, measured in months, rather than broader systemic risk.

Funding, Credit & Capital Allocation. A significant portion of the conversations centered on Oracle's financing plans. Ms. Maxson reiterated Oracle's strong commitment to maintaining its investment grade credit rating, not simply for the sake of borrowing costs as much as the depth of that market and ability to pursue the long-term term ambitions of the company. Acknowledging investor questions around future funding requirements and mix, the company continues to evaluate its range of external financing options and stressed funding strategy remains an area of active focus across the top management. The company fully intends to remain a market leader in AI infrastructure; it was acknowledged leverage and

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near-term funding needs were a constraint on how much additional RPO they take on near term, but BYOHW and pre-pay type deals are capital light tools that allow them to remain active in the market and keep a strong pulse on demand signals. This was consistent with messaging from last quarter, where we’re reminded of Ms. Maxson's approval of prior FY30 financial targets.

Economics of the AI Infrastructure Business. Management reiterated its view that AI infrastructure is an attractive, value generating business at scale, characterized by multi-year recurring revenue with healthy gross margins (30-40%), little incremental OpEx that enable's high-20s to 30% EBIT margins, and near 100% FCF conversion of after-tax EBITDA, all at the project level once fully ramped. The…