Oracle stock drops as AI financing plan overshadows earnings

Oracle Corporation's ambitious plans to finance its artificial intelligence infrastructure buildout overshadowed strong quarterly earnings, sending its stock sharply lower in after-hours trading on Wednesday, June 10. The company announced it expects to raise nearly $40 billion through debt and equity financing in fiscal 2027 to fund massive capital expenditures, raising investor concerns over its growing debt load and negative cash flow.

For its fiscal fourth quarter, Oracle reported adjusted earnings of $2.03 per share on revenue of $19.18 billion, exceeding analyst expectations. Revenue grew 21% year-over-year, and net income rose to $4.22 billion. The company also raised its adjusted earnings forecast for fiscal 2027 to $8.05 per share while maintaining its revenue target of $90 billion.

Despite these positive results, investor focus shifted to the company's financial strategy. Oracle said it plans capital expenditures of up to $95 billion in fiscal 2027, though it expects customer repayments to cover $20 billion to $25 billion of that amount. The company's own net cash outlay for capital spending is projected to be approximately $70 billion. This follows a fiscal 2026 in...