Oracle squeezed by $100B plus debt, rising AI spending and major layoffs
Mar 10th 2026
Oracle’s fiscal third quarter showed strain beneath steady top line growth as heavy borrowing, a massive data center buildout and a costly restructuring are driving negative free cash flow and heightening investor concern.
- Oracle stock is down about 20% so far in 2026 amid worries about debt and cash flow.
- Total debt climbed to $108.1 billion after an $18 billion bond sale in September 2025, up from $92.6 billion last fiscal year.
- Oracle has disclosed $248 billion in future data center lease obligations not on its balance sheet.
- Capital spending jumped from $6.9 billion to $21.2 billion year over year and the company has guided capex of roughly $50 billion this fiscal year.
- Free cash flow turned negative by $394 million and management says negative free cash flow will continue while it builds AI infrastructure.
- Oracle announced a $1.6 billion restructuring with $826 million charged so far and faces reports of thousands of potential layoffs to refocus on cloud and AI