Oracle (ORCL) shares have plummeted over 24% in 2026 as investor anxiety mounts over the company’s aggressive investments in artificial intelligence (AI). The tech giant plans to raise up to $50 billion in debt and equity to fund its AI infrastructure, raising concerns about escalating debt levels and potential negative free cash flow. Despite these worries, Oracle’s fiscal Q3 results show strong demand for AI infrastructure, with remaining performance obligations (RPO) soaring 325% year-over-year to nearly $553 billion.
The company reported a 22% increase in total revenue to $17.2 billion, driven by a 44% surge in cloud revenue. Oracle’s multi-cloud database business grew an astonishing 531% year-over-year, reflecting robust enterprise demand. Management asserts that existing contracts, including a $300 billion deal with OpenAI, mitigate balance sheet risks and position Oracle favorably within the AI infrastructure landscape.
For market professionals, Oracle represents a high-risk, high-reward opportunity. If the company can effectively convert its significant backlog into cash flows, the current share price may offer an attractive entry point for long-term growth investors.
Source: fool.com