Oracle shares fall 11% on $20 billion capital raise plan and negative free cash flow
By
Jordan Novet
Kettled twice. Extra chewy, extra trustworthy.
Summary
Oracle shares dropped 11% after the company announced plans for an additional $20 billion capital raise and reported negative free cash flow for the fiscal year. Despite beating earnings and revenue expectations in Q4 — with revenue up 21% to $19.18 billion and adjusted EPS of $2.03 exceeding estimates — investor concerns over cash flow and capital needs drove the stock down. The decline puts Oracle shares down about 8% year-to-date, significantly underperforming the Nasdaq's 9% gain.
Key quotes
· 3 pulledOracle shares tumbled 11% and headed for their worst day since January 2025, after the software maker told investors to expect an additional $20 billion capital raise while reporting negative free cash flow for the year.
For the fiscal fourth quarter, Oracle reported a beat on the top and bottom lines. Revenue jumped 21% to $19.18 billion, topping the $19.1 billion average analyst estimate.
Adjusted earnings per share of $2.03 exceeded the $1.96 average
You might also wanna read
Oracle's $300 Billion OpenAI Deal Leads to $315 Billion Market Value Loss
Oracle's stock has lost approximately $315 billion in market value since announcing a $300 billion deal with OpenAI in September, representi
ft.com·6mo ago
Oracle stock declines more than tech peers amid concerns over AI strategy and borrowing
Oracle's stock fell more than its tech rivals during a Wall Street sell-off due to concerns about the company's heavy borrowing and reliance
ft.com·7mo ago
Tech Stocks Lose $1 Trillion in Value as AI Investment Skepticism Grows
The article reports on a significant market downturn affecting major tech companies heavily invested in artificial intelligence, with approx
gizmodo.com·7mo ago
Oracle Considers 30,000 Job Cuts and Cerner Sale to Fund AI Data Center Expansion Amid US Bank Retreat
Oracle is reportedly considering cutting up to 30,000 jobs and selling its Cerner healthcare unit to fund AI data-center expansion, as US ba
cio.com·3mo ago
Oracle Stock Surges 36% in Best Day Since 1992, Adding $244 Billion in Market Value
Oracle's stock surged 36% in a single day, marking its best performance since 1992 and adding $244 billion in market value. The dramatic ris
cnbc.com·9mo ago
Amazon Leads Tech Stock Sell-Off as AI Investment Concerns Mount
Amazon shares fell over 5% after the company forecast significant capital expenditure increases, contributing to a broader tech sell-off as
cnbc.com·4mo ago