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Oracle Shares Sink on Revenue Miss and $15 Billion Capex Increase

Investors focused on heavier AI infrastructure spending alongside slow conversion of Oracle's $523 billion backlog.

Overview

  • Oracle posted fiscal Q2 revenue of $16.06 billion versus $16.21 billion expected, with adjusted EPS of $2.26 lifted by a one-time $2.7 billion pretax gain from selling its Ampere stake.
  • Remaining performance obligations rose to about $523 billion, supported by new agreements from Meta and Nvidia, as cloud infrastructure revenue reached $4.1 billion, up 68%.
  • Management lifted its fiscal 2026 capital spending plan by roughly $15 billion to about $50 billion to build AI data centers.
  • Executives outlined alternative financing models to reduce upfront costs, including customers bringing their own chips and vendors leasing capacity.
  • Shares fell roughly 10%–11% after hours as guidance underwhelmed some estimates and concerns persisted over leverage, negative free cash flow, and credit risk costs recently at their highest since 2009.