Oracle Corp. (NYSE:ORCL) stock fell more than 3% Thursday as investors pulled back from large-cap technology stocks and weighed the company’s aggressive AI spending ahead of its fiscal first-quarter 2027 earnings report.
Oracle is scheduled to release its results after the U.S. market closes Thursday. The Nasdaq dropped 0.96%, the S&P 500 fell 0.58%, and the Technology sector declined 1.3%.
Debt And Cash Flow Pressure Build
Oracle’s earnings will put its AI spending strategy under fresh scrutiny. The company has taken on substantial debt to expand AI infrastructure, while free cash flow is expected to remain negative into 2029. S&P Global Ratings downgraded Oracle in July to the lowest investment-grade rating.
Carnegie Investment Counsel research director Greg Halter, whose firm owns Oracle shares, told Bloomberg, “Oracle is right at the center of the market’s concerns about AI financing, and a lot would have to go right to change that.”
