AI Spending Pressures Balance Sheet
Investor unease has intensified as Oracle accelerates spending to support large-scale AI demand. In September, OpenAI agreed to spend more than $300 billion with Oracle, raising questions about how quickly the company can build sufficient capacity without straining its balance sheet.
Also Read: Oracle Stock Slips As Company Taps Debt Market For AI Infrastructure Spending: Report
Despite the earnings beat, several Wall Street firms cut their price forecasts.
On the earnings call, Chief Financial Officer Doug Kehring outlined plans for $50 billion in capital expenditures in fiscal 2026, well above prior guidance, alongside roughly $248 billion in long-term leases to support cloud expansion.
TikTok Deal Adds Fresh Uncertainty
Oracle's stock also swung as investors digested new details around a potential TikTok partnership. Shares initially jumped on reports that a group led by Oracle, Silver Lake, and MGX would acquire a significant stake in TikTok's U.S. operations.
That optimism faded after a leaked memo showed the new investors would not control key revenue drivers such as advertising or TikTok Shop. TikTok CEO Shou Chew said their role would be limited to a separate unit focused on data security and content moderation.
Additional pressure came after Blue Owl Capital exited a planned $10 billion data center project.
ORCL Price Action: Oracle shares were up 0.37% at $198.23 at the time of publication on Friday, according to Benzinga Pro data.
Read Next:
Image via Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
