Oracle to Spend $92B on AI Capex, Projects Negative Free Cash Flow Through 2029
ORCL sits 39% above its 52-week low of $134.57.
Summary
Oracle plans a massive $92 billion in capital spending for AI data center expansion, which is projected to result in negative free cash flow through 2029. This significant long-term investment follows recent reports of increased capital expenditures for AI infrastructure, including $55.7 billion for FY2026. Separately, a report indicates Microsoft passed on a $3 billion cloud deal with Oracle, though Oracle has called this report inaccurate. The substantial capital commitment and the extended period of negative free cash flow represent a major financial shift that could impact the company's profitability and investor outlook for several years.
At the time of this announcement, ORCL was trading at $186.70 on NYSE in the Technology sector, with a market capitalization of approximately $541.6B. The 52-week trading range was $134.57 to $345.72. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Wiseek News.