Tech company Oracle buffed up its costs for restructuring upto $2.1 billion, as per an official 10-Q report filed with the SEC.
“During the first nine months of fiscal 2026, our management approved, committed to, initiated and further supplemented plans to restructure and further improve efficiencies in our operations due to our acquisitions and certain other operational activities (2026 Restructuring Plan),” read the quarterly report.
So far, $982 million in restructuring costs have been recorded on a nine-month basis.
The report comes amid layoffs implemented at tech companies, with AI-led efficiency being cited as the main reason for downsizing. Tech companies such as Block and Amazon recently conducted mass layoffs, with AI expected to help smaller teams do more in a new workplace.
Block CEO Jack Dorsey has said he wishes to explore pairing leaner teams with technology that enables them to do more.
The company’s topline revenues remain robust, with the nine-month period ending February 2026 estimated at $48.1 billion. Revenue divided by segment was as follows:
- Cloud: $24.07 billion
- Software: $17.07 billion
- Hardware: $2.16 billion
- Services: $4.22 billion
Oracle continues to pursue expansion in AI and data centers
The Larry Ellison-led firm is now pursuing major growth in data centers and AI infrastructure, taking on large amounts of financing for capital expenditures, loans that often run into the billions of dollars.
Estimates say the company’s current financial commitment for data centers now runs up to more than $50 billion, a combination of $18 billion in bonds and $38 billion in debt. Oracle remains highly bullish on AI, listing a capital expenditure of roughly $48 billion for a 4-quarter trailing period ending Feb 28, 2026.
When considered on a nine-month basis, capital expenditures increased from $12.1 billion to $39.2 billion, with Oracle’s development of data centers being the main reason for the increase.
“We expect this upward trend to continue throughout the remainder of fiscal 2026 and in the next few fiscal years as we increase our existing data center capacity and establish data centers in new geographic locations in order to meet current and expected customer demand,” Oracle said in its 10-Q report.