Overview
- Oracle reported strong top‑line growth in fiscal 2026 with $67.4 billion in revenue and cloud infrastructure up roughly 93% year over year, but those sales have not matched the cost of its expansion.
- The company spent about $55.7 billion on capital projects in the year to May 2026, producing free cash flow near negative $24 billion and forcing large debt and preferred‑stock financings.
- Oracle raised roughly $46.1 billion of long‑term debt and $5 billion of preferred stock in fiscal 2026 and plans to secure about $40 billion more in debt and equity in fiscal 2027 to fund further data‑center builds.
- S&P cut Oracle’s long‑term rating to BBB‑ and flagged concentration risk from large customers such as OpenAI, leaving the company one notch above speculative grade and pushing up bond‑insurance costs.
- Managers were asked to prepare another round of layoffs in August to trim payroll before the new fiscal quarter, a measure that follows prior cuts of about 21,000 roles and reflects pressure to slow cash burn and shore up liquidity.