$Oracle(ORCL)$ The street is focused on elevated capex compressing near-term FCF, but that misses the underlying unit economics. Oracle is building capacity against signed, non-cancellable demand, which keeps idle overhead in check. Once these gigawatt-scale data centers come online, the drop-through to operating income should be substantial. Capex intensity is just the setup; operating leverage is the real story for long-term margin expansion.
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