Insider Monkey calls Alphabet the stronger risk-adjusted AI-cloud stock, while saying Oracle could offer more rerating upside to investors willing to accept greater financing and execution risk. Oracle trades at about 17 times forward earnings, versus roughly 22 for Alphabet.
Oracle’s fiscal first-quarter revenue rose 30% to $19.3 billion, with cloud infrastructure revenue up 121% to $7.4 billion. Remaining performance obligations reached $664 billion after more than $30 billion in added AI-cloud contracts. Despite record operating cash flow, including $11.4 billion in customer prepayments with significant financing components, Oracle posted about $5 billion in negative free cash flow and sold $20 billion in common stock.
Alphabet’s second-quarter revenue reached $119.8 billion; Google Cloud revenue rose 82% to $24.8 billion, while advertising generated $81.6 billion. Its quarterly capital expenditures were roughly $44.9 billion and free cash flow was negative $5.9 billion. Management raised 2026 capital-expenditure guidance to $195 billion–$205 billion; Alphabet also raised $49.6 billion through common and mandatory convertible preferred stock and issued $20.3 billion in senior unsecured notes.
