Oracle Fundraising Might Pressure Margins in Short-Term -- Market Talk

Dow Jones02-02 19:23

1123 GMT - Oracle's fundraising plans could pressure margins and weigh on the company's earnings per share, analysts at Jefferies write. The cloud-computing provider said it plans to raise $45 billion to $50 billion through a mixture of debt and equity in order to fund its artificial-investment operations. Those plans would also dilute shareholders' stock while the risk of delays on projects for major AI customers would further reduce margins, the analysts write. However, the announcement aids the company's balance sheet credibility and provides "the flexibility to scale more aggressively and stay on track to hit its [fiscal 2030] financial targets," the analysts say. Oracle shares trade down 3.25% premarket. (josephmichael.stonor@wsj.com)

(END) Dow Jones Newswires

February 02, 2026 06:23 ET (11:23 GMT)

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