Chicago, IL – January 28, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Oracle’s ORCL, Amazon AMZN and Alphabet GOOGL.
Oracle’s increasing cloud capital spending is positioning the company for its next growth phase by expanding capacity to meet rising AI and enterprise cloud demand. Management raised its fiscal 2026 capital expenditure forecast to around $50 billion, nearly $15 billion above earlier estimates, reflecting strong visibility into cloud bookings and future workloads.
During the second quarter of fiscal 2026, Oracle invested roughly $12 billion, primarily in GPU-based infrastructure and data centers to support growth in Oracle Cloud Infrastructure. While this heavy spending drove negative free cash flow in the quarter, the company emphasized that most of this expenditure is focused on revenue-generating equipment rather than long-term real estate assets. Because the equipment is added late in the data center build cycle, Oracle can start generating revenues shortly after customers go live, shortening the gap between investment and monetization.
These investments are closely linked to Oracle’s expanding backlog and demand pipeline. Management said many new bookings can be monetized quickly because capacity is already available or under construction. As a result, the company expects about $4 billion in incremental revenue acceleration beginning in fiscal 2027, driven by AI training, inference and multicloud deployments.
Oracle is taking a disciplined approach to funding this growth through a mix of debt markets and alternative models like customer-provided or leased chips, which helps keep revenues in line with costs. In addition, the company continues to expand its global cloud footprint by adding new regions and multicloud data centers, strengthening its ability to capture AI workloads worldwide.
Oracle competes with Amazon and Alphabet, which are investing heavily in data centers and AI infrastructure to expand their cloud businesses.
Amazon’s edge in cloud CapEx comes from the scale and speed of its AWS and AI investments. In the third quarter of 2025, Amazon spent nearly $90 billion on CapEx, mainly for AWS, custom silicon and AI capacity, showing strong confidence in long-term cloud demand. The company added 3.8 gigawatts of power capacity and deployed Trainium chips and large AI clusters like Project Rainier, enabling faster monetization and reinforcing Amazon’s cloud leadership.
Alphabet’s strength in cloud CapEx is rooted in its full-stack AI strategy and infrastructure spending. In the third quarter of 2025, Alphabet invested about $24 billion in CapEx, mainly in servers and data centers to support growing Google Cloud and AI demand. Its TPU roadmap, alongside NVIDIA GPUs, improves performance and cost efficiency, while rapid data center expansion supports a $155 billion backlog, strengthening Alphabet’s position as a scalable, AI-first cloud leader.
Shares of Oracle have declined 26.3% in the past six months, underperforming both the Zacks Computer and Technology sector’s growth of 14.4% and the Zacks Computer – Software industry’s fall of 13.5%.
Shares of Oracle have declined 26.3% in the past six months, underperforming both the Zacks Computer and Technology sector’s growth of 14.4% and the Zacks Computer – Software industry’s fall of 13.5%.
From a valuation standpoint, ORCL stock is currently trading at a forward 12-month Price/Earnings ratio of 23.1x, which is lower than the industry average of 26.69x. Oracle carries a Value Score of D.
The Zacks Consensus Estimate for ORCL’s fiscal 2026 earnings is pegged at $7.42 per share, down by 0.7% over the past 30 days. The earnings figure suggests 23.05% growth over the figure reported in fiscal 2025.
ORCL stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Since 2000, our top stock-picking strategies have blown away the S&P’s +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
ThePostMaster
