Oracle Faces Cash Burn, Credit Downgrade, and Gas Pipeline Delay
Oracle’s AI data-center build is driving cash strain and weak sentiment as its credit rating was cut in July and a supplier’s gas pipeline slipped six months, risking timelines for the Jupiter site in New Mexico. Despite a record $638B backlog, fiscal capex hit $55.7B with free cash flow about -$23.7B; guidance points to $70B net-cash capex and ~$40B of new funding in fiscal 2027.