Oracle Shares Drop 55% Amid Aggressive AI Infrastructure Spending

Oracle Corporation saw its share price decline approximately 55% from an all-time high of $345 in September 2025, trading around $145 per share as of September 2, 2026. The decline follows a period of aggressive investment in data centers and AI infrastructure, which increased company debt and caused free cash flow to turn sharply negative.

Despite the stock volatility, the company reported strong fundamentals for fiscal 2026. Revenue increased 17% to over $67 billion, while net income rose 36%. Cloud infrastructure revenue saw a 75% year-over-year jump, reflecting high demand for AI services.

Oracle ended its fiscal year with a backlog totaling $638 billion. This backlog provides the company with significant future revenue visibility as it continues to expand its AI capabilities.