Oracle drops 14% in a week after a $55.7 billion spending year

Oracle lost 13.83% on the week after its fiscal fourth quarter showed $55.7 billion of capital spending and negative free cash flow of $23.7 billion. Texas insider buying was light, led by a TETRA Technologies officer's $216,898 purchase.

Oracle reported its fiscal fourth quarter on Wednesday, and by Friday the stock had lost 13.83% on the week. It closed at $213.68 on June 5, $201.26 on June 10 and $184.10 on June 11, a one day drop of 8.53%, per Yahoo Finance. It ended Friday at $184.13. The percentages are Lone Star Index calculations from those closes.

Revenue for the three months to May 31 rose 21% to $19.2 billion, and cloud infrastructure revenue rose 93% to $5.8 billion, Oracle's release shows. Remaining performance obligations, the contracted revenue it hasn't booked yet, reached $638 billion. The company reaffirmed $90 billion of revenue for the new fiscal year.

Oracle spent $55.7 billion on capital projects in fiscal 2026 and had negative free cash flow of $23.7 billion, the release shows. It expects to raise about $40 billion of debt and equity in the new fiscal year, including a $20 billion stock sale it had already announced. Reuters reported on June 11 that the company expects about $70 billion of net capital spending in the current fiscal year.

ORCL lists 2300 Oracle Way in Austin on its latest quarterly report. Elsewhere among the largest Texas names it was a mixed week. Texas Instruments gained 5.63% and Tesla 3.95%, while Exxon Mobil slipped 1.94%, all from Yahoo Finance closes on June 5 and June 12. Primoris Services fell 19.03%, from $121.84 to $98.65, including a 15.40% drop on June 9 alone, per Yahoo Finance.

Our read

Oracle's argument is that a big piece of this spending is already paid for by someone else. The company said the prepaid parts of its large AI contracts, plus the parts where customers supply their own hardware, now add up to $75 billion, and that this "substantially reduces the amount of capital Oracle must raise" to build its AI datacenters, its release shows.

Investors heard the other half. The backlog ended the quarter at $638 billion, the release shows, but it doesn't say how much of that turns into revenue in the next year, and the cash is going out now. Reuters quoted Citizens JMP saying the faster buildout is pressuring near term gross margins and raising questions about funding and returns, and Melius saying it's hard to know if Oracle can stick to its spending plan if more business comes from OpenAI and Anthropic.

The same Reuters story said Oracle lacks the large cash flows that have mostly paid for the outlays of tech giants it competes with, like Amazon and Microsoft, so it's burning cash and selling debt. That's an AI infrastructure question, and the Austin address doesn't change it. We'd watch how much of that backlog Oracle says will turn into revenue within a year when its annual report comes out, and how the $40 billion raise splits between debt and stock.

Small buys

This was a quiet week for Texas insider purchases, and none topped $250,000.

Kurt Hallead, TETRA Technologies' vice president for treasury and investor relations, bought 22,000 shares of TTI on June 9 at a weighted average of $9.859, about $216,898, his Form 4 shows. TETRA lists Spring. Joseph Wm. Foran of Matador Resources bought 2,000 more shares of MTDR at about $53.07 on June 9, his filing shows, and director Monika Ehrman added 362.

A chief executive and a finance chief made small purchases. Richard Little, who runs enCore Energy, bought 50,000 shares of EU at $1.28 on June 9, the whole of his direct stake, a Form 4 filed June 11 shows. Nelson Curnes, chief financial officer of Mobia Medical, bought 5,000 shares of MOBI at about $12.79 the same day, per his filing. Mobia went public May 7 and lists Austin, and enCore lists Dallas.

Opaleye Management added 40,782 shares of Alpha Cognition (ACOG) from June 5 to June 10, per filings on June 9 and June 11.

We left out a Shattuck Labs director who bought in an underwritten stock offering and a Dallas investor's purchases of a Tampa insurer. Insider Radar has the rest, and the Texas Map shows where these companies sit.

What to watch

• June 25: Dell holds its annual meeting, where shareholders vote on moving its legal home from Delaware to Texas, per its proxy statement.
• June 27: The Texas Stock Exchange runs its final industry confidence test, under a May 6 trader alert.
• July 6: TXSE starts production trading in test symbols, under the same alert.

Oracle and the other large Texas names in this issue are sortable on the Screener.

Lone Star Index publishes research, not investment advice.