Oracle Corp. (ORCL): CEO & CFO meetings highlight extreme operational agility; and good visibility into both supply and demand

We hosted investor meetings in LA and SF on 11/4-11/6 with Clay Magouryk (CEO), Hillary Maxson (CFO), and Bill Choi (SVP, IR and Corp Dev). Three central themes that we think can drive discovery value for the stock. First, Oracle operates its data center business on the core tenet of extreme agility, manifesting in flexibility on architecture design, customer contracting models, and ability to stand up capacity. Oracle has certainty on how much each customer contracting model (vendor financing, customer prepayment, BYOH) contributes to backlog, and has stress-tested downside scenarios ahead of stating that no more capital will be needed this cycle, given completion of its $20bn debt and equity raise last week. Second, Oracle has planned for a more challenging data center build environment for over a year; the election does not represent a binary change in future scaling. Oracle sees minimal risk to the 7GW it plans to bring online through May 2028 as it is all for projects that are con