Oracle shares drop 8% after company flags additional $20 billion capital raise

According to CNBC, Oracle shares fell 8% after the company told investors to expect an additional $20 billion capital raise and reported negative free cash flow for the year. Oracle said it plans to raise $40 billion through debt and equity financing, including a $20 billion share sale announced earlier, after raising $43 billion in debt and $5 billion in equity in fiscal 2026; free cash flow for the last fiscal year was negative $23.7 billion as capital expenditures jumped 162% to $55.7 billion. For fiscal Q4, revenue rose 21% to $19.18 billion and adjusted EPS was $2.03, both above LSEG estimates, while the company maintained 2027 fiscal-year revenue guidance of $90 billion and lifted its adjusted EPS forecast to $8.05. Oracle guided for fiscal Q1 adjusted EPS of $1.72 to $1.76 with 27% to 29% revenue growth; cloud infrastructure revenue jumped 93% to $5.8 billion, and remaining performance obligation reached $638 billion as of May 31.