This article presents an all-epitaxy approach to reduce the root mean square spectral width (ΔλR M S) of 850 nm oxide-confined vertical cavity surface-emitting lasers (VCSELs) with a large aperture of 7 µm through strategic optimization of the oxide guiding layer within the epitaxy structure. At 75°C, the VCSEL demonstrates a ΔλR M S of ∼0.3 nm at a bias current of 7.5 mA. Furthermore, the VCSEL achieves successful transmission of 26.5625 Gbaud PAM-4 modulation over a short-reach (SR) OM4 fiber link while maintaining a TDECQ budget below the 4.5 dB specified by 50G IEEE Ethernet standards.