Oracle FY26 Free Cash Flow Turns Negative, CDS Hit Record, Burry Shorts
ORCL sits 29% above its 52-week low of $114.5.
Summary
Oracle's fiscal 2026 free cash flow turned negative amid $55.7B in capex, with total debt reaching ~$129.5B and ~$260B in AI data center lease obligations. Credit default swap spreads hit a record high, and shares fell ~2% in response. Michael Burry opened a new short position at $144.63/share, adding to the bearish pressure. This follows the June 10-K that disclosed the massive capex and negative free cash flow outlook, but the CDS spike and Burry's short are new market signals. The debt and lease figures quantify the scale of Oracle's AI infrastructure bet, which is now straining its balance sheet and credit profile.
At the time of this announcement, ORCL was trading at $147.93 on NYSE in the Technology sector, with a market capitalization of approximately $423.5B. The 52-week trading range was $114.50 to $345.72. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.