Oracle Wants To Spend Big For AI, Stock Drops

Oracle reported strong Q4 earnings with revenue of $19.18B (beating estimates) and 24% YoY EPS growth to $2.11. However, the stock fell 8.42% after the company announced plans to spend approximately $70 billion in capital expenditures for fiscal 2027 to support AI infrastructure expansion. Despite record RPO of $638B and $67B in new AI infrastructure contracts, investors reacted negatively to the aggressive spending outlook and expected gross margin decline.