Oracle Stock Tumbles 7%, Wiping Out $28 Billion, As It Launches $10 Billion Share Sale
The shares sank in Monday trading as Oracle began selling stock and notes to fund its AI data-center buildout.
Oracle, the enterprise software and cloud company, saw its shares fall 6.97% to $121.56 in Monday trading, as of 1:56 p.m. ET, erasing about $28 billion in market value after it launched a $10 billion common stock offering alongside a matching $10 billion senior notes sale, according to the preliminary prospectus supplement.
A $20 billion raise, split in two
The stock portion covers about 76.5 million shares. The offering price is still open, and Oracle says the money could go to capex, paying down debt, acquisitions, dividends or buybacks.
At Friday's $130.67 close, the sale would lift Oracle's share count to 3,100,255,354, from 3,023,726,695 on August 31, 2026.
The stock was on pace for its third straight daily decline in Monday trading and its biggest one-day drop since October 14, when it fell 8.8%. Market value stood at $368.5 billion.
Down a third this year
Oracle shares were down about 33% year to date at Friday's close, badly trailing the S&P 500, which was up about 11% over the same stretch. The stock sat 50% below its highest close of the past year, set on October 31, 2025.
Oracle sells the software, cloud services and hardware businesses use to run their IT systems, including cloud applications, the Oracle database and cloud infrastructure for AI workloads. Cloud revenues were 51% of total revenues in fiscal 2026.
Paying for the AI buildout
In its September earnings release, Oracle said it completed the sale of $20 billion of common stock through an at-the-market program in its first fiscal quarter, as part of a previously disclosed capital investment program. Remaining performance obligations, contracted revenue not yet recognized, reached $664 billion, up $209 billion from a year earlier.
First-quarter revenue rose 30% to $19.3 billion, and cloud infrastructure revenue rose 121% to $7.4 billion. Operating cash flow hit a record $23 billion, yet free cash flow was negative $5 billion as Oracle kept investing to support that infrastructure business.
The company also said it booked more than $30 billion of additional AI cloud contracts, and that based on how those contracts are structured, there is no incremental impact on its plans to raise capital.
Oracle is scheduled to report its next quarterly results on Tuesday, December 8.
Sources
- Oracle Stocks Decline 3.78% With New Funding Testing Its AI Financing Promise — Yahoo Finance
- Oracle shares fall after $10 billion stock offering — Yahoo Finance
- Oracle Stock Is Falling On Latest AI Plan | Investor's Business Daily — investors.com
- Oracle Shares Dip Monday: What's Happening? — benzinga.com
- Oracle Stock Falls on $20 Billion Raise — Yahoo Finance
- The company's filing (Oracle Corp.) — SEC filing
- Oracle Stock Plunge Tops $60 Billion Amid $20 Billion Stock and Bond Sale. Why the Sell-Off Could Be an Opportunity — The Motley Fool
- Why Oracle Stock Is Down Today — The Motley Fool
- Oracle Corp. — Form 10-Q for the quarter ended 2026-08-31 (quarterly results) — SEC EDGAR
- Oracle — earnings release (Form 8-K, Item 2.02), filed 2026-09-10 — SEC EDGAR
