Oracle 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.
With Thursday’s drop, the stock is now down for the year, falling about 8% and trailing the Nasdaq, which is up about 9%
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, according to LSEG. Adjusted earnings per share of $2.03 exceeded the $1.96 average estimate.
But Oracle’s artificial intelligence buildout continues to weigh on the stock, as investors question whether the company’s massive amount of spending will result in profit growth, after free cash flow in the last fiscal year came in at negative $23.7 billion. Oracle said it plans to raise $40 billion through debt and equity financing, including a $20 billion share sale announced earlier. That’s after raising $43 billion in debt and $5 billion in equity in fiscal 2026.