Oracle Stock Hits 52-Week Low Amid Concerns Over Capital Expenditures and Debt
Oracle (NYSE: ORCL) stock has fallen to a 52-week low, down more than 50% from its peak in early 2026. Despite strong financial results—$19.2 billion revenue for the fiscal fourth quarter of 2026 and $34.0 billion total cloud sales—the company's capital expenditures have surged to $55.7 billion, more than double the previous year’s spending. This aggressive investment in AI data centers has led to a significant cash-flow deficit: Oracle reported negative free cash flow of $23.7 billion for fiscal 2026 despite rising operating cash flow. The company raised $43 billion in debt during the period and plans an additional $40 billion raise, including a potential $20 billion at-the-market equity offering. Investor concerns are also fueled by uncertainty around interest rates under new Federal Reserve Chair Kevin Warsh. Rising borrowing costs could increase Oracle’s financial burden and slow its infrastructure expansion, delaying revenue realization from its large backlog of AI contracts.
Topics: 52-week low AI cloud contracts capital expenditures Oracle ORCL