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Oracle Shares Slide on Revenue Miss and $15 Billion AI Spending Increase

An EPS beat flattered by an Ampere stake sale contrasts with a swelling $523 billion backlog, sharpening investor questions on funding and returns.

Overview

  • Oracle stock fell between roughly 11% and 16% in premarket and early trading after reporting fiscal Q2 revenue of $16.06 billion versus $16.21 billion expected.
  • The company guided that AI and data‑center capital spending for fiscal 2026 will run about $15 billion above its prior plan, raising worries about debt and cash flow.
  • Adjusted earnings per share came in at $2.26, topping forecasts, with the result materially aided by the sale of Oracle’s stake in Ampere Computing.
  • Remaining performance obligations climbed to $523 billion, highlighting multi‑year commitments even as software revenue fell 3% and new licenses dropped about 21% year over year.
  • The selloff weighed on AI‑linked peers and helped pull the Nasdaq lower, while the S&P 500 and Dow finished at record highs.