Oracle shares plunge 10%‑12% after AI‑heavy capex plan and new capital raise

Oracle Corp. saw its stock fall between 10% and 12% in after‑hours trading after reporting quarterly results that featured AI‑driven data‑center spending far above its own forecasts. Capital expenditures for the quarter were about $16.5 billion, taking the fiscal‑year total to $55.7 billion, higher than the $50 billion target, and the company said it expects roughly $70 billion of net capex for fiscal 2027. To fund the outlays, Oracle will raise about $40 billion in new debt and equity, including a previously announced $20 billion stock issuance. The move pushed the free‑cash‑flow deficit to $23.7 billion, up from $394 million a year earlier, prompting investors to question the company’s cash burn. “Oracle’s accelerated data center buildout is pressuring near‑term gross margins and raising investor questions around CapEx, funding, and returns,” said Citizens JMP Securities. Quarterly revenue reached $19.18 billion with adjusted EPS of $2.11, beating expectations, while AI‑related cloud infrastructure revenue grew 93% year‑over‑year to $5.8 billion. The share decline also weighed on European software stocks, with SAP and Capgemini sliding after the news.