Oracle'sstock chart looks like a horror movie right now, and the plot keeps getting scarier. Shares of Oracle (ORCL) have fallen almost 50% from its September 2025 peak and are down 20% year-to-date. The recent sell-off is driven by a credit downgrade, a spike in bond insurance costs, and growing doubts about whether Oracle's massive artificial intelligence bet will pay off.
For a company that has spent decades as a steady, boring, profitable software business, that's a big shift. And the numbers back up the worry. Oracle's income statement still looks impressive on the surface.
Total revenue rose to $67.4 billion in fiscal 2026, up 17.3% year over year. In Q4 of 2026, it reported revenue of $19.2 billion, up 21%, driven largely by cloud infrastructure revenue, which grew 93% year over year. But look closer at the balance sheet, and the picture gets messier.
Gross profit margin fell to 65.8% in fiscal 2026, down from 70.5% the year before and a steep drop from 80.6% back in 2021. Cost of sales jumped to $23 billion from $16.9 billion in just one year. That's the cost of building out data centers at breakneck speed, and it's eating into profitability even as sales climb.
Net property, plant and equipment more than doubled, jumping from $56.7 billion to $129.6 billion in a single year. Long-term debt climbed from $85.3 billion to $122.3 billion. Lease obligations more than doubled too, rising from $11.5 billion to $26.6 billion.
Add it all up, and Oracle's total liabilities ballooned from $147.4 billion to $218.7 billion in just twelve months. Notably, Oracle's free cash flow for fiscal 2026 came in at negative $23.7 billion. That's the gap between what Oracle earns from operations and what it's investing into new data centers, chips and leases.
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