Oracle shares rose 10.7% to $144.54 on Wednesday, a $14.01 gain from the prior session; its latest quarterly figures showed capital spending above operating cash flow.
For the three months ended Aug. 31, Oracle reported operating cash flow of $23.103 billion and capital expenditures of $28.499 billion. The gap left free cash flow negative by $5.396 billion. Operating cash flow included an $11.363 billion increase in deferred revenue from customer prepayments. Earlier coverage of the quarter’s cash-flow gap and lease commitments detailed those figures.
Oracle’s filing also listed $288 billion in future lease commitments, nearly all related to data centers. The leases had not taken effect as of Aug. 31, so the commitments were absent from the company’s balance sheet and lease maturity schedule. They were separate from $117.7 billion in noncurrent and $7.6 billion in current notes and other borrowings.
Oracle issued 141 million shares during the quarter through an at-the-market sale, raising $19.9 billion in net proceeds. The issuance reduced existing shareholders’ proportional ownership, according to earlier coverage of Oracle’s credit profile.
On July 9, S&P Global Ratings lowered Oracle’s long-term issuer rating from BBB to BBB-, the lowest investment-grade level. CNBC reported that Deutsche Bank strategist Jim Reid warned a further downgrade could pressure investors limited to investment-grade debt to sell Oracle bonds. Oracle told CNBC that maintaining its investment-grade rating was its first priority.
Oracle has scheduled its fiscal second-quarter 2027 results for Dec. 14, 2026.
