Oracle Stock Crashes After Hours
Oracle shares tumbled more than 10% in after-hours trading on June 10, 2026, closing at $180.88 after falling $20.38 from the regular session close of $201.26. The sharp decline came immediately after the company released its fiscal fourth-quarter earnings and unveiled capital spending plans that far exceeded Wall Street estimates.
According to Reuters, Oracle CFO Hilary Maxson told investors on the earnings call that the company expects $70 billion in direct capital spending in fiscal 2027, plus another $20 billion to $25 billion that it expects to be repaid. Analysts had forecast $67.66 billion, according to LSEG data. The gap between expectations and reality sent shockwaves through the market.
The stock had already been under pressure, losing roughly 10% on the prior Friday after Broadcom's disappointing AI guidance triggered a broad tech selloff. The Nasdaq had sunk 4.18% that day, its worst session since April 2025, according to CNN Business.
Record AI Spending Raises Debt Concerns
Oracle spent approximately $55.66 billion on capital expenditures in fiscal 2026, above its own target of $50 billion. The company had said in February it aimed to raise as much as $50 billion this year through a combination of debt and equity sales. With well over $100 billion in total debt, Oracle is now one of the top debt issuers in the AI race that has fueled Nasdaq volatility.
Despite record revenues, the escalating capital expenditure and debt increases were enough to send the stock down sharply. Gizmodo reported that Oracle is not only a major builder of America's AI infrastructure but also considered a bellwether of market confidence in AI. Investor reaction to its earnings report was yet another instance showing market uncertainty over AI investment returns.
Why Oracle's AI Bet Matters for the Market
Oracle's spending plans come against the backdrop of a staggering commitment from OpenAI, which has pledged to spend more than $300 billion on Oracle's infrastructure services over five years, according to CNBC. This massive demand is driving Oracle's unprecedented buildout, but investors are increasingly questioning whether the returns will justify the investment amid the broader AI stock selloff.
Oracle shares have risen roughly 20% over the past 12 months but remain well below their 52-week high of $345.72, reflecting the volatility that has characterized AI-linked stocks in 2026. The company's market capitalization dropped to approximately $592 billion after the after-hours selloff, erasing tens of billions in value in a single session.
The broader market is now watching closely for signs of whether Oracle's AI spending spree will pay off or whether the growing debt burden will constrain future growth. As one of the largest corporate borrowers in the AI sector, Oracle's financial health has implications that extend well beyond its own stock price.
What Comes Next for Oracle Stock
Analyst price targets for ORCL range from $155 to $400, with a consensus target of $255.18, according to Yahoo Finance. The wide range reflects deep uncertainty about how quickly Oracle's contracted backlog will translate into revenue growth. With a PE ratio of 36.94 and a beta of 1.65, the stock remains highly sensitive to shifts in market sentiment toward AI infrastructure spending.
Oracle's earnings report beat revenue estimates for the fiscal fourth quarter, but the mixed results and the eye-watering capex forecast overshadowed the positive news. Investors will now focus on whether Oracle can convert its AI infrastructure investments into sustainable revenue growth without further straining its balance sheet.