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S&P Cuts Oracle to BBB-Minus Amid AI Spending Risk

7/14/2026

Summary

Story summary

S&P Global Ratings downgraded Oracle Corp. to BBB- on Thursday because of AI-spending risk.
Oracle CEO Clay Magouyrk reported $67 billion in AI contracts and $75 billion in prepaid hardware for the quarter.
Oracle posted fiscal 2026 revenue of $67.4 billion, a 17% increase, and Q4 cloud-infrastructure revenue of $5.8 billion, up 93%.
S&P projects FY2027 capital spending of $90-$95 billion, a free-cash-flow deficit of about $42 billion, and $40 billion of debt-equity financing.

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Story summary

S&P Global Ratings downgraded Oracle Corp. to BBB- on Thursday because of AI-spending risk.
Oracle CEO Clay Magouyrk reported $67 billion in AI contracts and $75 billion in prepaid hardware for the quarter.
Oracle posted fiscal 2026 revenue of $67.4 billion, a 17% increase, and Q4 cloud-infrastructure revenue of $5.8 billion, up 93%.
S&P projects FY2027 capital spending of $90-$95 billion, a free-cash-flow deficit of about $42 billion, and $40 billion of debt-equity financing.