New York, Feb 3, 2026, 13:08 EST — Regular session
- Oracle shares dropped roughly 4% in early afternoon trading, marking a continuation of their decline over the past two days.
- Investors are weighing the company’s plan to raise between $45 billion and $50 billion in 2026, which could include share sales of up to $20 billion.
- Attention is turning to the scale and timing of the upcoming bond issuance, along with how fast Oracle moves on equity offerings.
Oracle shares dropped 3.7% to roughly $154 Tuesday, after the company unveiled a broad capital-raising strategy to bankroll costly expansions of data centers tailored for AI workloads.
The selloff is significant now as Oracle seeks market funding for one of the biggest infrastructure expansions in the sector, right when investors are growing choosy about AI returns and balance sheet strength.
Dilution risk is also in focus here. Oracle is relying on stock-linked financing as well as debt, and traders typically react harshly to any suggestion of a sizable, open-ended share offering.
Oracle announced Sunday it plans to raise between $45 billion and $50 billion in gross cash proceeds during calendar 2026, combining debt and equity to “maintain a solid investment-grade balance sheet.” The company flagged a one-time issuance of investment-grade senior unsecured bonds “early in 2026” along with a new at-the-market equity program capped at $20 billion. https://investor.oracle.com/investor-news/…
Oracle disclosed in a prospectus supplement filed Monday with the U.S. Securities and Exchange Commission that it has inked an equity distribution deal with BofA Securities, Citigroup, Deutsche Bank Securities, Goldman Sachs, and J.P. Morgan. These banks will act as sales agents for up to $20 billion of common stock. The arrangement is an at-the-market program, allowing Oracle to sell shares gradually during regular trading hours at market prices, rather than unloading a large block all at once.
Analysts noted that Oracle’s strategy to balance debt with equity might ease concerns among rating agencies, even though common shareholders could end up bearing some costs. “Oracle is not only saying they’re committed to investment-grade debt, but they are sending a clear message to bond investors and the rating agencies that they are,” Guggenheim analysts said. https://www.reuters.com/business/oracle-sh…
Barclays analysts noted in the same round of reports that combining equity with a mandatory convertible might cut debt requirements and bolster the balance sheet, Reuters reported. A mandatory convertible is a preferred security that later converts into common stock, usually based on a predetermined formula.
Oracle’s credit-default swaps — insurance against default — tightened following the plan, Reuters reported, indicating some investors expect less credit risk in the near term. Yet equity traders remain fixated on the pace of cash burn as Oracle expands capacity and on whether major customers will maintain their spending.
Oracle unveiled an “agentic” AI platform for banks on Tuesday at a financial services event in New York, showcasing tools designed to automate and personalize customer interactions. “Oracle is ushering in a new era of banking where AI moves beyond task automation to deliver real business intelligence, agility, and trust at scale,” said Sovan Shatpathy, senior vice president for product management and development at Oracle Financial Services. https://www.oracle.com/news/announcement/o…
The product announcement failed to calm the stock amid a wider sell-off in software and cloud sectors. “Many areas, especially around AI, are priced for perfection,” John Campbell, senior portfolio manager at Allspring Global Investments, noted in a market note. https://www.reuters.com/business/sp-nasdaq…
Questions remain about the size of spending across the sector and the speed of its return. Should Oracle’s biggest clients pull back on orders or financing costs climb, the company may face hefty capex burdens, increased leverage, and dilution from a larger share count.
Investors are focused on the details and timing of Oracle’s upcoming bond sale, along with any news on how quickly the equity program is moving. More broadly, they’re watching to see if this week’s Big Tech earnings shift expectations around AI-driven capital spending.
