{"id":982,"date":"2026-03-10T00:38:55","date_gmt":"2026-03-10T00:38:55","guid":{"rendered":"https:\/\/stock999.top\/?p=982"},"modified":"2026-03-10T00:38:55","modified_gmt":"2026-03-10T00:38:55","slug":"oracle-under-pressure-from-more-than-100-billion-in-debt-and-massive-layoffs","status":"publish","type":"post","link":"https:\/\/stock999.top\/?p=982","title":{"rendered":"Oracle under pressure from more than $100 billion in debt and massive layoffs\u00a0\u00a0"},"content":{"rendered":"

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The $400 billion enterprise software and cloud infrastructure giant Oracle is in the hot seat with a fiscal third quarter earnings drop on Tuesday amid a spotlight on its heavy borrowing and negative free cash flow.\u00a0\u00a0<\/p>\n

To set the scene, at the top line analysts are expecting about 20% growth in quarterly revenues to roughly $17 billion, right in line with Oracle\u2019s guidance of 19% to 21% growth from the prior year. Earnings per share, excluding certain items, are expected to be up about 16% to $1.71. But under the hood? There\u2019s a lot more going on and those issues wiggling around have helped send its stock down about 20% so far in 2026.\u00a0<\/p>\n

How Oracle\u2019s stock fares after it reports results on Tuesday will depend largely on which storyline Wall Street chooses to focus on.<\/p>\n

First up, job cuts. Last quarter, Oracle disclosed a 2026 restructuring plan that it expected would cost the company up to $1.6 billion primarily due to \u201cemployee severance costs.\u201d Of that $1.6 billion, Oracle has recognized about $826 million in charges against the plan\u2014that means Oracle still had about $788 million to go. Bloomberg reported last week that Oracle was eying layoffs in the thousands to rebalance its workforce and to lean further in on its shift from an enterprise software licensing company into a cloud infrastructure provider that competes with Microsoft and Amazon.<\/p>\n

Meanwhile, Oracle has also turned to bonds to raise capital like the other hyperscalers, finishing its most recent full fiscal year with $92.6 billion in total debt outstanding. In the first half of its current fiscal year, the figure ratcheted up to $108.1 billion following a massive September 2025 issuance of $18 billion in notes with maturities ranging from 2030 to 2065. Oracle has also disclosed a further $248 billion in future data center lease obligations not yet on its balance sheet that it is hoping will translate into customer demand and rising revenues.\u00a0<\/p>\n

Last quarter, co-CEO Clay Magouyrk sought to reassure investors about its additional capital needs in the future. Magouyrk said the company is committed to maintaining its investment grade debt rating. Moody\u2019s rates Oracle Baa2, which is two notches above junk and lower than Amazon, Alphabet, Meta, and Microsoft.<\/p>\n

\u201cWe\u2019ve been reading a lot of analyst reports, and we\u2019ve read quite a few that show an expectation of upwards of $100 billion for Oracle to go out and kind of complete these buildouts,\u201d said Magouyrk last quarter, referring to outside estimates of the company\u2019s planned capital expenditures. \u201cAnd based on what we see right now, we expect we will need less, if not substantially less money raised than that amount to go and fund this buildout.\u201d<\/p>\n

As is the case with the other hyperscalers, including Alphabet and Meta, Oracle\u2019s capital expenditures are soaring as it races to build more data centers and infrastructure for AI. Last May, Oracle\u2019s free cash flow turned negative by $394 million after the company\u2019s operating cash flow of $20.8 billion was overtaken by its capex of $21.2 billion. From fiscal 2024 to fiscal 2025, Oracle\u2019s capex jumped from $6.9 billion to $21.2 billion and last quarter Oracle guided its capex would be $50 billion this fiscal year. Meanwhile, its operating cash flow grew from $18.7 billion in fiscal 2024 to $20.8 billion in fiscal 2025 and analysts estimate it\u2019s on track to reach $22.3 billion this year.\u00a0The company has said it expects the negative free cash flow trend to continue as it pursues its AI ambitions.<\/p>\n

According to founder and executive chairman Larry Ellison, this is all in service to Oracle\u2019s three-step transformation. Ellison told investors last quarter that the first step was Oracle making its database available inside its competitors\u2019 clouds, including Amazon\u2019s AWS, Alphabet\u2019s Google, and Microsoft\u2019s Azure. Step two was \u201cvectorizing\u201d the data to make it readable by AI models, which makes the data customers have in Oracle\u2019s systems more valuable, said Ellison. Third, Oracle built what Ellison called an \u201cAI Lakehouse,\u201d which vectorizes all a company\u2019s data and not just what\u2019s in Oracle databases or applications.\u00a0<\/p>\n

\u201cTraining AI models on public data is the largest, fastest-growing business in history,\u201d Ellison said. \u201cAI models reasoning on private data will be an even larger and more valuable business. Oracle databases contain most of the world\u2019s high-value private data.\u201d<\/p>\n

#Oracle #pressure #billion #debt #massive #layoffs<\/p>\n","protected":false},"excerpt":{"rendered":"

The $400 billion enterprise software and cloud infrastructure giant Oracle is in the hot seat…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[245],"tags":[552,1552,877,1555,1308,878,1553,1209,1208,880,1554],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/982"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=982"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/982\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}