Core Viewpoint - Oracle's stock experienced its worst trading day since 2001, closing 11% lower after Q2 revenues missed estimates, leading to a significant widening of its CDS spread [1][2] Financial Performance - Oracle reported total revenue of $16.1 billion for fiscal Q2 2026, a 14% increase year-over-year, although it fell short of the estimated $16.21 billion [5] - The cloud segment generated approximately $8 billion in revenue, reflecting a year-over-year growth of 34% [5] - Earnings per share for the quarter were $2.26, up 54% from the previous year, exceeding the consensus estimate of $1.64 [6] Debt and Capital Expenditure - The company has a substantial debt load exceeding $100 billion and is projected to increase its capital expenditure forecast to about $50 billion in fiscal year 2026, up from $35 billion [2] - The widening CDS spread indicates increased costs for raising debt, which could impact future fundraising efforts [1][2] Market Sentiment and Future Outlook - Despite the recent stock decline, Oracle's year-to-date performance remains positive with a nearly 12% increase, raising questions about the sustainability of its fundamentals [4] - The company's historical performance shows a mixed record in meeting earnings estimates over the past eight quarters, which may affect investor sentiment moving forward [6]