Oracle (ORCL) shares have fallen 24% over six months as investors weighed its aggressive AI infrastructure spending against its funding needs, alongside competition from Amazon, Microsoft and Google. Cloud infrastructure revenue jumped 121% year over year to $7.4 billion in the first quarter of fiscal 2027, total revenue rose 30% to $19.3 billion, and remaining performance obligations increased $209 billion to $664 billion. Management raised its fiscal 2027 outlook to at least $90 billion in revenue, up 34%, and non-GAAP earnings of $8.10 per share. However, first-quarter capital expenditures reached $28 billion, pushing free cash flow to negative $5 billion, and Oracle sold $20 billion of common stock, diluting shareholders.
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