Oracle slips on reports of unexpected debt plan

Core Insights - Oracle is facing negative cash flow and plans to raise $15 billion through a bond sale to support its AI initiatives [1][4][5] Financial Performance - In Q1 fiscal year 2026, Oracle reported a 2% decline in GAAP EPS and a significant 152% year-over-year drop in free cash flow, totaling -$5.9 billion [2] - Capital expenditures surged to $27.4 billion in Q1 2026, a substantial increase from $7.8 billion in the previous year [2][3] - Despite financial concerns, Oracle's remaining performance obligations (RPOs) amount to $455 billion, which has helped maintain investor confidence [3] Debt and Investment Plans - Oracle plans to issue corporate bonds in seven parts, including a 40-year bond expected to yield 1.65% more than similar US treasuries [5] - The company has $11 billion in cash and equivalents, with $9 billion of debt due within a year and a total long-term debt of $82.2 billion [7] Strategic Partnerships and Projects - Oracle is involved in the $500 billion Stargate project with OpenAI and SoftBank to enhance U.S. AI infrastructure [4][6] - The company is negotiating a $20 billion cloud computing agreement with Meta Platforms and is set to become TikTok's security provider for American operations [8]