Oracle Shares Plummet After Disappointing Quarterly Results Amid AI Investment Concerns
Oracle shares fell 15% on December 11, 2025, following quarterly results that disappointed investors and led to a decline in the company's market value by approximately $80 billion, dropping from $630 billion to $550 billion. Quarterly revenue increased 14% to $16 billion, with cloud computing revenue growing 34% and infrastructure revenue rising 68%. Despite these gains, after-hours trading saw a further drop of roughly 11.5%.
The company announced capital expenditure guidance implying a 40% increase to $50 billion, mainly spent on building data centres to support artificial intelligence initiatives. Oracle’s long-term debt rose 25% over the past year to $99.9 billion, accompanied by higher debt insurance costs. Revenue from customer contracts surged 440% year over year, driven by new commitments from major clients such as Meta and Amazon.
Oracle has expanded its AI-related partnerships, including deals with OpenAI, and continues to be a significant player in cloud computing, competing with AWS, Microsoft, and Google. However, analysts have expressed caution, warning that the heavy AI spending financed through increased debt may not yield timely revenue returns. Concerns have also been raised about the sustainability of circular AI funding and the risk of an AI investment bubble.
