Overview
- Oracle reported quarterly revenue and profit that beat Wall Street expectations on Thursday, including a 93% year‑over‑year rise in cloud and AI infrastructure revenue to $5.8 billion.
- Shares fell more than 4% in after‑hours trading when management disclosed plans to raise nearly $40 billion in fiscal 2027, a package that includes a previously announced $20 billion stock sale.
- The company said it spent $55.7 billion on investments in the past fiscal year and that outstanding performance obligations rose 15.4% to $638 billion, underscoring large ongoing cash commitments.
- Markets reacted by selling software stocks in Europe, with SAP among the heaviest hit as investors worried that high capital needs for AI could squeeze profits across the sector.
- Analysts warn the scale of AI datacenter builds may force more debt and equity raises and could slow cash flow for enterprise software firms, so watch future funding moves and quarterly cash‑flow updates.