Oracle stock rises as Fed signals potential for steady interest rates

Oracle Corporation shares rose 5.7% on September 3, 2026, following comments from Federal Reserve Governor Christopher Waller. Waller indicated a willingness to support holding interest rates steady if inflation continues to moderate, a stance that reduced market expectations for immediate rate hikes.

Despite the recent stock bump, Oracle faces significant financial scrutiny due to its high debt load and massive capital expenditures. The company has invested heavily in AI data center infrastructure, contributing to total borrowings of $129.5 billion as of May 31. Additionally, Oracle carries approximately $260 billion in off-balance-sheet data center obligations.

While Oracle's stock has declined 36% over the trailing 12-month period, the company reported 17% revenue growth for fiscal 2026, driven largely by a 39% surge in cloud services revenue. The company's backlog has also expanded significantly, growing from $455 billion to $638 billion since last September. Analysts at Jefferies maintain a positive outlook, projecting substantial upside despite concerns regarding leverage and the company's multi-year partnership with OpenAI.