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Oracle Leads Premarket Slide In AI Stocks After Earnings Miss
Oracle's fiscal Q2 revenue fell short with a $15 billion planned data center spend increase and net debt rising 25%, dragging AI stocks down over 10%, analysts said.
- Late Wednesday, Oracle Corporation published Q2 FY26 earnings for the period ended Nov. 30, 2025, and shares plunged over 10% in after‑hours and premarket trading to $197.33.
- Oracle intends to boost capital expenditures by $15 billion in fiscal 2026 to convert a record $523 billion backlog, while long‑term debt rose to $99.6 billion after a $18 billion bond sale and $38 billion debt financing.
- The quarter delivered a 54% jump in adjusted earnings per share to $2.26, but total revenue was light at $16.06 billion and free cash flow was negative $10 billion.
- Markets reacted: Nasdaq futures index 25,599.25 down 0.78%, S&P futures 6,852.75 down 0.56%, semiconductor and AI stocks slid, and Bitcoin near $90,000 dropped 2.8%.
- The five‑year credit default swap has jumped to the highest since 2022, reflecting a material repricing of risk, while Morgan Stanley forecasts net debt about $290 billion by 2028.
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Oracle Stock Tumbles as Wall Street Shifts Focus to AI Debt Risks
Oracle Corporation reported strong second-quarter fiscal 2026 earnings after the market closed on Dec. 10, driven by heavy demand for AI-related services. Yet the company’s stock tumbled as investors increasingly weighed the risks of its rapid, debt-financed expansion to meet AI-driven capacity needs. The surge in spending on AI infrastructure has created a broader dilemma for markets: weighing the promise of high future payoffs against the risk…
·New York, United States
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Coverage Details
Total News Sources21
Leaning Left2Leaning Right4Center5Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 18%
C 46%
R 36%
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