Oracle Drops 11% After $20 Billion Raise Plan and $23.7 Billion Free Cash Flow Deficit
Updated
Updated · CNBC · Jun 11
Oracle Drops 11% After $20 Billion Raise Plan and $23.7 Billion Free Cash Flow Deficit
3 articles · Updated · CNBC · Jun 11
Summary
Oracle shares fell 11%, putting the stock down about 8% for 2026, after the company flagged another $20 billion capital raise and reported negative $23.7 billion in free cash flow.
The selloff came despite a quarterly beat, as investors focused on the cost of Oracle’s AI expansion: capital expenditures surged 162% to $55.7 billion, and fiscal 2027 net cash capex is projected around $70 billion.
Oracle said it plans to raise $40 billion through debt and equity financing, including the previously announced $20 billion share sale, after already raising $43 billion in debt and $5 billion in equity in fiscal 2026.
Operating momentum remained strong, with fiscal fourth-quarter revenue up 21% to $19.18 billion, cloud infrastructure revenue up 93% to $5.8 billion, and remaining performance obligations reaching $638 billion, up 363%.
The company kept its fiscal 2027 revenue target at $90 billion and lifted adjusted EPS guidance to $8.05, underscoring a broader debate over whether AI-driven growth can justify Oracle’s heavy spending.