Oracles latest earnings offered investors relief as stronger-than-expected revenue and a smaller cash burn eased concerns over its heavy AI spending. The companys revenue backlog surged to $664 billion, while customer prepayments helped fund capital expenditure. Oracle shares rose 4% after market as investors gained confidence in its AI growth strategy.

Oracle's shares fell 12% after FY2026 results showed $129.5B in debt, negative free cash flow, and plans to raise $40B more in FY2027.

Oracle (ORCL) stock falls over 3% ahead of Q1 FY27 earnings as investors weigh heavy AI spending and mounting cash flow pressure.