Oracle raised its fiscal 2026 capital expenditure guidance by $15 billion, pushing the total forecast from $35 billion to $50 billion. Actual spending may land even higher, in the range of $55.7 billion to $56 billion. Oracle’s stock tumbled 12-13% in a single trading session after earnings, dragging other tech names down with it.
The OpenAI factor and the debt mountain
A massive $300 billion computing deal with OpenAI is the primary engine behind Oracle’s infrastructure binge. By late 2025, Oracle’s long-term debt had ballooned to roughly $99.6 billion to $108 billion. Total liabilities reportedly exceeded $160 billion.
As of June 2026, Oracle indicated plans to raise approximately $40 billion through a combination of debt and equity in fiscal 2027 to keep funding its AI capital expenditures. Oracle’s free cash flow has suffered significant shortfalls as spending outstripped original estimates.
Credit markets are flashing yellow
