Oracle (ORCL) Is Down 12.7% After Hiking AI Capex To $50 Billion And Posting Q2 Results - Has The Bull Case Changed?

Simply Wall St.12-13 23:41

Earlier this week, Oracle reported fiscal Q2 2026 results showing revenue of US$16.06 billion and net income of US$6.14 billion, alongside a sharp increase in AI‑driven cloud infrastructure backlog ...

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Has The Bull Case Changed?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-13 23:41 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nyse-orcl/oracle/news/oracle-orcl-is-down-127-after-hiking-ai-capex-to-50-billion><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Earlier this week, Oracle reported fiscal Q2 2026 results showing revenue of US$16.06 billion and net income of US$6.14 billion, alongside a sharp increase in AI‑driven cloud infrastructure backlog ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nyse-orcl/oracle/news/oracle-orcl-is-down-127-after-hiking-ai-capex-to-50-billion\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4097","symbol_name":"系统软件","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nyse-orcl/oracle/news/oracle-orcl-is-down-127-after-hiking-ai-capex-to-50-billion","article_id":"2591269658","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/22247-main-header/1756200262254"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nyse-orcl/oracle/news/oracle-orcl-is-down-127-after-hiking-ai-capex-to-50-billion","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2591269658","pubTimestamp":1765640503,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Earlier this week, Oracle reported fiscal Q2 2026 results showing revenue of US$16.06 billion and net income of US$6.14 billion, alongside a sharp increase in AI‑driven cloud infrastructure backlog and a quarterly dividend declaration of US$0.50 per share.\nAt the same time, Oracle’s decision to lift its fiscal 2026 capital expenditure plan to about US$50 billion, largely to fund AI data centers for customers such as OpenAI, Meta, and Nvidia, has intensified concerns about its growing debt...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4097":"系统软件","BK4581":"高盛持仓","LU1934455194.USD":"AB SICAV I LOW VOLATILITY TOTAL RETURN EQUITY PORT \"A\" (USD) ACC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","IE00B19Z3581.USD":"Legg Mason ClearBridge - 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At the same time, Oracle’s decision to lift its fiscal 2026 capital expenditure plan to about US$50 billion, largely to fund AI data centers for customers such as OpenAI, Meta, and Nvidia, has intensified concerns about its growing debt load and the timing of cash returns from its very large remaining performance obligations. We’ll now examine how Oracle’s much higher AI‑related capital spending plan reshapes the earlier investment narrative built around accelerating cloud demand. The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.Oracle Investment Narrative RecapTo own Oracle today, you have to believe its huge AI and cloud backlog can eventually outweigh the strain from debt‑funded data center spending and negative free cash flow. The latest earnings beat, revenue miss, and US$50 billion CapEx plan sharpen that trade off, making the timing of AI‑driven cash conversion the key near term catalyst and the rising leverage profile the central risk. Among the recent announcements, Pipefy’s rollout of OCI based AI Agents in the US nicely illustrates how Oracle is trying to turn its heavy AI infrastructure buildout into practical, enterprise workflow usage. If businesses like Pipefy can help drive more diverse, “everyday” AI workloads on OCI, that could support the thesis that Oracle’s massive remaining performance obligations are tied to real adoption rather than a narrow set of headline AI contracts. But while growth headlines grab attention, investors should also be aware that Oracle’s expanding debt load and elevated credit risk metrics could... Read the full narrative on Oracle (it's free!)Oracle's narrative projects $99.5 billion revenue and $25.3 billion earnings by 2028. This requires 20.1% yearly revenue growth and roughly a doubling in earnings from $12.4 billion today.Uncover how Oracle's forecasts yield a $342.28 fair value, a 80% upside to its current price.Exploring Other PerspectivesORCL 1-Year Stock Price Chart Fair value estimates from 27 Simply Wall St Community members span roughly US$171 to US$390, showing how far apart views on Oracle can be. That spread sits against a business where AI driven remaining performance obligations rely heavily on a few large customers, so readers may want to compare multiple views before deciding how sustainable the current growth story looks.Explore 27 other fair value estimates on Oracle - why the stock might be worth over 2x more than the current price!Build Your Own Oracle NarrativeDisagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.A great starting point for your Oracle research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.Our free Oracle research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Oracle's overall financial health at a glance.Want Some Alternatives?Every day counts. These free picks are already gaining attention. See them before the crowd does:Uncover the next big thing with financially sound penny stocks that balance risk and reward.Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.These 11 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.The New Payments ETF Is Live on NASDAQ:Money is moving to real-time rails, and a newly listed ETF now gives investors direct exposure. Fast settlement. Institutional custody. Simple access.Explore how this launch could reshape portfoliosSponsored ContentNew: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2591269658","isCrawlerRequest":true}