Oracle's Secret Weapon

What Oracle Earnings Mean for CoreWeave, IREN, and Cipher Mining

Larry Ellison really wants to do it all, and he knows it.

His goal is not just to catch up, but to become the fourth hyperscaler globally, alongside Amazon, Microsoft, and Google. But his ambitions don’t end there: he wants to help his son buy Warner Bros. Discovery, sell CNN, and eventually bolt on TikTok if the political winds shift in his favor. Ellison is no longer thinking about quarterly reports. He is thinking about his legacy.

To this end, he is prepared to risk investing $50 billion a year against an expected revenue of $67 billion. No competitor maintains such an “incredible” investment-to-revenue ratio. Ellison is ready to put everything on the line to elevate the company to a new level.

Source: Oracle

Let’s go through the items that few have paid attention to while the market panicked over balance sheet issues.

The Overlooked Acceleration

While headlines scream about negative FCF, Oracle’s operational power has reached a critical mass that cannot be ignored:

• Infrastructure Soars: Cloud Infrastructure (OCI) revenue in Q2’26 grew 66%. This is a metric few can match.

• The GPU Fever: GPU-related revenues (key to AI training) exploded by a stunning 177% year-over-year.

• The Multi-Cloud Masterstroke: The most telling number: Multi-Cloud Database Consumption grew by 817%! This figure, highlighted on the earnings call, proves that Oracle’s most profitable core is moving reliably to the cloud, securing a guaranteed revenue stream by successfully monetizing its primary asset on competitors’ platforms.

1. Strategic Validation: The End of Vendor Lock-In

The 817% growth is the definitive proof that Oracle’s “Cloud Neutrality” or “Multi-Cloud Strategy” is dominating the enterprise landscape.

• The Old Model: Historically, Oracle databases were tied to on-premises servers or Oracle Cloud Infrastructure (OCI). This forced customers into OCI even if their other major workloads were on AWS or Azure.

• The New Strategy: Oracle introduced partnerships (e.g., Oracle Database@Azure, Oracle Database@AWS) that allow customers to access Oracle databases as a managed service directly within their rival cloud environments.

• The 817% Impact: This explosion in consumption shows that enterprise clients are overwhelmingly choosing the path of least resistance: continuing to rely on the powerful, familiar Oracle database while retaining their operational flexibility on their preferred hyperscaler platform. This validates Oracle’s decision to forgo cloud exclusivity in favor of database ubiquity.

The high percentage signals an extremely strong acceleration in the most profitable part of Oracle’s business—the database

• Securing the Golden Goose: Oracle’s database software has always been its highest-margin product. By making it available on competitor clouds, Oracle is successfully migrating its massive, loyal customer base from the old, volatile License model to the stable, recurring, and high-margin Cloud Subscription model. While the Cloud Database Services segment (of which multi-cloud is a part) grew 30% overall, the 817% growth rate identifies the multi-cloud program as the primary engine fueling that segment’s acceleration. This consumption is a direct, reliable source of revenue that will rapidly increase the size of the recurring revenue stream.

• Mitigating FCF Risk: This strong consumption guarantees a robust, high-quality, long-term revenue stream, which is crucial for offsetting the immediate cash burn caused by the high CapEx)for the AI buildout. The 817% figure reassures investors that the massive investment being made now will be monetized rapidly by Oracle’s core, high-value customer base.