Investors penalize ORCL after the company outlines $90 billion in capital expenditures to scale AI data centers by fiscal 2027.
Oracle Corp shares plunged 12% after announcing a $90 billion to $95 billion capital expenditure plan for fiscal 2027, overshadowing record financial results. The company plans to raise $40 billion through debt and equity, including a $20 billion at-the-market program, to expand AI data center capacity.
Revenue rose 21% year over year to $19.18 billion, beating estimates of $19.1 billion, while non-GAAP EPS of $2.11 surpassed $1.97 consensus. Remaining performance obligations hit $638 billion, up 363% year over year, exceeding expectations. Oracle Cloud Infrastructure revenue grew 93% to $5.8 billion.
Despite strong cloud growth, the aggressive spending plan spooked investors, leading to the sharp stock decline.