🚨Oracle has a MASSIVE debt and cash flow problem:
Free cash flow fell to -$23.7 billion in fiscal 2026, as capital expenditures surged +162% YoY to $55.7 billion, almost entirely tied to AI data center buildouts.
Analysts expect cash flow to remain deeply negative through 2028, with recovery not expected until 2030.
To fund this buildout, Oracle raised $43 billion in debt and $5 billion in equity in fiscal 2026, and has since announced plans to raise another $40 billion.
Oracle also cut 21,000 employees over the last year, from 162,000 to 141,000, at a restructuring cost of ~$1.8 billion, as it cuts costs across white-collar roles to redirect capital toward AI infrastructure.
How will this entire frenzy end?
Free cash flow fell to -$23.7 billion in fiscal 2026, as capital expenditures surged +162% YoY to $55.7 billion, almost entirely tied to AI data center buildouts.
Analysts expect cash flow to remain deeply negative through 2028, with recovery not expected until 2030.
To fund this buildout, Oracle raised $43 billion in debt and $5 billion in equity in fiscal 2026, and has since announced plans to raise another $40 billion.
Oracle also cut 21,000 employees over the last year, from 162,000 to 141,000, at a restructuring cost of ~$1.8 billion, as it cuts costs across white-collar roles to redirect capital toward AI infrastructure.
How will this entire frenzy end?