Overview
- Oracle posted fiscal Q2 revenue of $16.06 billion, missing estimates, while adjusted EPS beat at $2.26 as cloud infrastructure revenue rose 68% to $4.1 billion.
- Capital expenditures hit $12 billion in the quarter, and the company lifted its fiscal 2026 capex target to $50 billion, $15 billion above its prior plan.
- Remaining performance obligations climbed to a record $523 billion on new commitments from Meta and Nvidia, intensifying scrutiny of concentrated exposure and circular AI deals alongside a previously announced multiyear OpenAI compute pact starting in 2027.
- Shares fell roughly 11%–14%, erasing about $70 billion in market value and pressuring other AI-related names and index futures, as investors reassessed the pace and payoff of AI infrastructure spending.
- Oracle’s debt load tops $100 billion after an $18 billion bond sale, with credit-default-swap prices jumping to the highest since 2009, even as executives touted bring-your-own-chips options and reaffirmed a commitment to investment-grade credit.