Oracle Shares Plunge Up To 11% As $40B Capital Raise And $23.7B Negative Free Cash Flow Spark Investor Fears Despite Strong Earnings Beat

Oracle shares plunge up to 11% as the tech giant reveals plans to raise $40 billion in debt and equity financing amid a staggering $23.7 billion in negative free cash flow, spooking investors despite a strong earnings beat with revenue surging 21% to $19.18 billion and capital expenditures skyrocketing 162% to $55.7 billion to fuel aggressive AI infrastructure expansion.

• Oracle shares are tumbling roughly 8-11% after the company announces plans to raise an additional $20 billion through debt and equity financing, bringing its total planned capital raise to $40 billion, raising investor concerns about cash flow.
• Despite beating earnings and revenue estimates for the fiscal fourth quarter — with revenue jumping 21% to $19.18 billion and adjusted EPS of $2.03 — Oracle reports a staggering $23.7 billion in negative free cash flow for the full fiscal year, fueling investor anxiety.
• Capital expenditures surge 162% to $55.7 billion as Oracle aggressively expands its AI infrastructure, with the new CFO projecting a net capex outlay of around $70 billion for fiscal 2027, while the company maintains its $90 billion revenue guidance for the year.