Oracle shares opened nearly 12% lower in Frankfurt on Thursday, mirroring the sharp losses seen in U.S. after-hours trading. The drop came after the company issued sales and profit forecasts that fell short of analyst expectations.
Oracle also said it now expects spending to rise by $15 billion compared with previous projections. The increase highlights that its heavy investment in AI and cloud infrastructure is not yet translating into profits at the pace Wall Street had hoped.
Jefferies described the results as “mixed,” noting that Oracle’s $523 billion backlog came in slightly above expectations. However, the firm said concerns about funding AI-related debt remain unresolved, even as Oracle remains committed to maintaining its investment-grade credit rating. Jefferies reiterated its buy recommendation.
