$OFSS

Oracle Financial Services Software (OFSS) slipped in afternoon trading on Thursday, mirroring weakness in its parent company, Oracle Corporation, as investors expressed concerns over the software giant’s ambitious spending and fundraising plans to support its artificial intelligence (AI) expansion. The decline came despite Oracle reporting stronger-than-expected fourth-quarter results. For the quarter ended May 31, the company posted a 21 percent year-on-year increase in revenue, while net income rose to $4.22 billion from $3.43 billion in the corresponding period last year. Investor sentiment, however, was weighed down by Oracle’s plans to significantly ramp up investments in AI infrastructure. The company announced that it expects to raise $40 billion through a combination of debt and equity financing in fiscal 2027, including its previously disclosed $20 billion share-sale programme. Oracle has been aggressively expanding its data centre capacity to meet rising demand from AI customers, including OpenAI. Capital expenditure during the fourth quarter reached approximately $16.5 billion, taking total spending for fiscal 2026 to $55.7 billion—exceeding the company’s earlier guidance of $50 billion. Looking ahead, Oracle expects net capital expenditure to increase further to around $70 billion in fiscal 2027, which ends in May 2027. The company also reported negative free cash flow of $23.7 billion for fiscal 2026, reflecting the substantial investments being made to strengthen its AI infrastructure and cloud capabilities.