**Oracle Shares Fall After Q4 Results Amid Heavy Capital Expenditure Concerns**
Oracle Corporation (ORCL) experienced a decline in stock price on June 11, 2026, dropping between 8% and 10% after announcing fourth-quarter fiscal results. The stock closed around $201 before the announcement and slid to the $180-$184 range due to worries about the company’s aggressive capital spending plans from fiscal year 2026, which reached $55.7 billion—a 162% increase—compared to an expected forecast of $50 billion.
Despite reporting record fourth-quarter revenues of $19.2 billion (up 21% year-over-year) and strong cloud performance (cloud revenues at $9.9 billion, up 47%), Oracle’s negative free cash flow totaled $23.7 billion for the year. The company announced plans to raise around $40 billion through debt and equity financing in fiscal 2027, which has raised concerns regarding shareholder dilution. Remaining Performance Obligations reached $638 billion, a 363% increase year-over-year, highlighting potential long-term growth amid current execution risks.
Oracle’s guidance for the first quarter of fiscal 2027 anticipates revenue growth between 27-29% and non-GAAP EPS of $1.72-$1.76. However, profitability pressures are expected to persist as the ramp-up of data center projects aligns with revenue contributions, complicating short-term investment appeal.
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