Oracle shares tumble 11% on increased capital raise, cash concerns

Oracle shares tumbled 11% after the software maker signaled an additional $20 billion capital raise, despite beating quarterly revenue and earnings expectations. The slide came as investors weigh heavy AI-related spending against cash-flow concerns, with free cash flow for the year negative at $23.7 billion. For the fiscal fourth quarter, Oracle reported revenue of $19.18 billion, up 21% year over year, and adjusted EPS of $2.03, above the $1.96 forecast. The company plans to raise about $40 billion through debt and equity, adding to $43 billion in debt and $5 billion in equity raised in fiscal 2026. Capital expenditures surged 162% to $55.7 billion, with 2027 capex seen near $70 billion, excluding prepayments.