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Oracle (ORCL) Stock Plunges 26% Amid Fresh Layoffs to Finance Massive AI Expansion
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MoneyCheck
Capital spending surged to $55.7 billion in fiscal 2026, a dramatic increase from the previous year’s $21.2 billion, resulting in a $23.7 billion negative cash flow.
Oracle Corporation, ORCLSources with knowledge of the situation, along with internal documentation reviewed by the publication, indicate that certain divisions may experience workforce reductions exceeding 10%.
This substantial spending resulted in the company burning through $23.7 billion more cash than it generated from operations.
To bridge this financial gap, Oracle tapped debt markets for $43 billion and issued an additional $5 billion in equity during fiscal 2026.
In early February, the company initially announced plans to secure between $45 billion and $50 billion throughout 2026 specifically for cloud infrastructure expansion.