June 10 (Reuters) – Oracle’s capital spending for 2026 exceeded its projection and the cloud computing company said on Wednesday it would raise more debt in 2027, reflecting the staggering scale of cash burn needed to buildout its AI infrastructure.
Its shares fell 5% in extended trading, after Oracle said it expects to raise nearly $40 billion through a combination of debt and equity financing in 2027. This includes its previously announced $20 billion at-the-market equity issuance.
The company spent about $55.66 billion in 2026, above its target of $50 billion, amid intense investor scrutiny over its rising debt load. Oracle had said in February it aimed to raise as much as $50 billion this year through a combination of debt and equity sales.
The software industry is also contending with growing investor concerns that AI tools could pull enterprise clients away from traditional software by taking over tasks once done by their products.
Oracle reported total revenue of $19.18 billion for the quarter, compared with analysts’ average estimate of $19.10 billion, according to data compiled by LSEG.
Remaining performance obligations, a key indicator of future contracted revenue, grew 15.4% to $638 billion, ahead of Visible Alpha estimates of $592.52 billion.
Its adjusted profit of $2.03 per share for the fourth quarter exceeded expectations of $1.96.
(Reporting by Juby Babu in Mexico City; Editing by Arun Koyyur)
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