Oracle Stock (ORCL) shares plunged nearly 14% on Thursday after the company’s latest quarterly report showed AI-related expenses rising far above Wall Street expectations, along with revenue coming in slightly below forecasts.
The tech giant revealed $12 billion in capital expenditures for its fiscal second quarter — a massive jump from $4 billion last year and well above the roughly $8 billion analysts expected, according to Bloomberg data.
Oracle also increased its full-year capital expenditure guidance to $50 billion, up sharply from the previous $35 billion estimate, as the company continues to expand its AI cloud infrastructure.
On the revenue side, Oracle posted $16.06 billion for the quarter, up 14% year-over-year, but still short of the $16.21 billion expected by analysts.
Thursday’s sell-off pushed Oracle toward what could be its worst single-day decline since January, reflecting investor concern over the company’s aggressive AI spending and slower-than-expected revenue performance.