Oracle reports $23.7 billion in negative free cash flow for the year and plans further debt to fund AI expansion.
Oracle announced plans to raise an additional $20 billion for AI infrastructure, adding to the $20 billion it sought earlier this year. The company reported $23.7 billion in negative free cash flow for the fiscal year, raising concerns about its financial health and debt levels.
The company beat revenue and adjusted earnings estimates, posting $19.18 billion in revenue, a 21% increase, and adjusted EPS of $2.03. However, GAAP EPS fell short at $1.45, impacted by stock-based compensation, acquisition costs, and restructuring charges totaling $0.30 per share.
Investors remain cautious as Oracle continues to rely on debt and equity markets to finance AI initiatives, which have yet to generate positive cash flow. The company’s growing obligations and cash burn have raised questions about its long-term sustainability.