Oracle shares struggle as investors question debt load

Oracle just posted what might be its most impressive growth numbers in years. Investors rewarded the company by sending its stock down 12%. Oracle’s fiscal year 2026 results, released June 10, revealed a business sprinting toward AI infrastructure dominance while simultaneously taking on a debt load that has credit agencies reaching for the warning labels. The numbers tell two very different stories Oracle’s remaining performance obligations hit $638 billion as of May 31, 2026, a 363% increase year-over-year, driven almost entirely by large-scale AI cloud contracts. Cloud infrastructure revenue grew 93% year-over-year in Q4 FY2026 alone. Oracle’s capital expenditures for the fiscal year came in at $55.66 billion, overshooting its own $50 billion target, and produced a negative free cash flow of $23.7 billion for the year. Total debt stood at $129.5 billion as of May 31. Management signaled it plans to raise approximately $40 billion more in debt and equity during fiscal year 2027 to fund continued AI infrastructure buildout. Oracle shares dropped as much as 12% on June 11, the day after results were released. S&P’s downgrade added fuel to an already nervous room In July 2026, S...