US EditionOracle shares on pace for worst quarter since 2001 as new CEOs face concerns about AI build-out
Oracle’s aggressive AI infrastructure spending and $50 billion fiscal 2026 capex plans raise investor concerns amid project delays and funding uncertainties, with shares down over 30%.
- On Friday, Oracle Corp. shares fell about 30% this quarter, marking its steepest quarterly drop in more than two decades amid AI spending skepticism.
- Facing costly buildouts, Oracle raised $18 billion in bonds and CFO Doug Kehring plans $50 billion in fiscal 2026 capex amid reports Blue Owl Capital withdrew from funding the $10 billion Michigan data center.
- Revenue came in at $16.06 billion, below expectations, with adjusted EPS boosted by Ampere stake sale even as free cash flow disappointed; remaining performance obligations reached $523 billion.
- Investor skepticism deepened after mixed results and funding uncertainty, as several Wall Street firms cut forecasts and grew doubtful that Oracle's costly AI bet will pay off soon.
- Oracle's $300 billion contract with OpenAI, set to begin in 2027, underpins its revenue target of $225 billion by fiscal 2030, but delays and funding doubts cast doubt on that goal.
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Is Oracle a Sinking Ship or a Buying Opportunity?
Quick Read Oracle (ORCL) stock dropped over 40% from its September peak of $877B valuation. Oracle’s $300B OpenAI contract assumes spending Oracle cannot guarantee. Oracle’s remaining performance obligations hit $523B but depend heavily on OpenAI’s ability to pay. If you’re focused on picking the right stocks and ETFs you may be missing the bigger picture: retirement income. That is exactly what The Definitive Guide to Retirement Income was …
Why Oracle's AI Spending Spree Is Spooking Wall Street - Oracle
Oracle Corp. (NYSE:ORCL) is facing mounting investor scrutiny just months after a major leadership change, as concerns grow over the company's aggressive push into artificial intelligence infrastructure. Shares of the software giant have fallen about 30% this quarter, reflecting skepticism around heavy capital commitments tied to AI expansion, CNBC reported Friday. The selloff comes roughly three months after Oracle named Clay Magouyrk and Mike …
Oracle stock is plummeting and headed for its worst quarter in over 20 years, as investors question the pace and price tag of the company's AI push.
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