Oracle's Capital Expenditure Plan Poses Challenge to Stock Performance
Oracle has guided to a $70 billion net cash outlay for capital expenditures in fiscal 2027, up from $48 billion the previous year. The company plans to raise around $40 billion through new debt and equity to fund this expansion into hyperscale AI infrastructure. This aggressive spending is expected to reduce gross margins and result in negative free cash flow until FY2028.
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Topics: AI infrastructure capital expenditures debt financing Oracle profitability impact