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Oracle Stock Pressured by $40B Funding Plan for AI Infrastructure
Oracle plans a $40 billion debt and equity raise to fund AI growth as remaining performance obligations hit a record $638 billion.
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Oracle shares plunged over 10% despite beating fiscal fourth-quarter earnings estimates with $2.11 per share. While the company reported $67 billion in infrastructure contracts and a massive $630 billion backlog driven by AI demand, investors reacted negatively to high capital expenditure levels. Management forecasted a 34% revenue jump for fiscal year 2027, yet analysts expressed concerns regarding the sustainability of Oracle's spending and its reliance on debt funding to support its AI build-out.
Oracle plans a $40 billion debt and equity raise to fund AI growth as remaining performance obligations hit a record $638 billion.
Read the full storyOracle shares fell over 10% following fiscal Q4 2026 results, as capital expenditure concerns overshadowed a $2.11 per share earnings beat.
Analysts warn of Oracle's reliance on debt to fund cloud expansion despite a record backlog exceeding $630 billion.
Following weeks of anticipation for cloud sector performance, Oracle reported fiscal fourth-quarter 2026 revenue of $19.18 billion and earnings per share of $2.03, both exceeding Wall Street expectations.