Oracle Stocks Experience Significant Drop

Oracle's stock price has declined, with shares dropping by varying percentages. Analysts have expressed puzzlement about the post-earnings slide.

Oracle (ORCL) shares fell roughly 10-11% following its fiscal Q4 2026 report, a striking decline given that the company beat expectations with record total revenue of about $19.2 billion, up 21% year over year, and cloud infrastructure revenue up 93%. The reaction turned an apparent beat-and-raise into a funding-and-cash-flow story.

The sell-off was driven by capital-expenditure concerns: full-year capex reached about $55.7 billion, well above prior guidance near $50 billion, and management signaled net capex of roughly $70 billion in fiscal 2027 to support its AI data-center buildout. With free cash flow deeply negative, Oracle said it plans to raise around $40 billion through debt and equity, including a previously announced $20 billion share sale, sharpening dilution and balance-sheet questions.

Bulls point to a backlog that has swelled above $520 billion as justification for the heavy spending, while bears worry about how that growth is financed. Investors will watch whether ORCL can convert its AI-driven backlog into cash generation fast enough to fund its commitments without straining the balance sheet.