"ORCL stock has plummeted by over 40% from its peak after Q2 earnings. FY 2026 earnings disappointed investors. Analysts began piling concerns about how overextended data center spending was and whether it was even sustainable for Oracle to fund the growth. Investors baked in a valuation that would only make sense if Oracle managed to grow at a blistering pace for years with ever-growing margins."
"Investors' pet peeve with Oracle is that the funding is proving to be quite unreliable. News came out that Blue Owl Capital was withdrawing from its funding commitments, meaning that Oracle's $10 billion Michigan data center was in jeopardy. Oracle denied this and said that the news reports were "incorrect". Oracle's Partner, Related Digital, said that Blue Owl did not withdraw unequivocally and that the company still had others willing to fund the project."
"It invited a fresh wave of criticism after Oracle reported $16.06 billion in revenue, up 14.22% year-over-year. This missed the estimates by $134.2 million. EPS did beat estimates by a wide margin, but this was due to a one-time boost from Oracle selling its Ampere stake. The Wall Street Journal pointed to another " squishy number " that investors are paying more attention to as Oracle's story looks more brittle."
Oracle's market valuation collapsed from a near‑trillion peak after ORCL stock fell over 40% following Q2 FY2026 results. Revenue was $16.06 billion, up 14.22% year‑over‑year, missing estimates by $134.2 million; reported EPS beat was aided by a one‑time gain from selling an Ampere stake. Reports that Blue Owl Capital was withdrawing funding for a $10 billion Michigan data center created uncertainty, though Oracle denied the reports and partners said funding options remained. Remaining performance obligations (RPOs) surged to $523 billion, prompting questions about the realism of projected sales and the sustainability of heavy data‑center spending.
Read at 24/7 Wall St.
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