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Oracle's shares drop 43% amid high spending despite AI growth and 34% EPS rise.

Analyst Insights
17 Jul 2026
Seeking Alpha
View Source
Neutral
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Oracle remains a key player in AI with strong cloud growth and a 34% increase in earnings per share. However, the company's share price has fallen 43% due to elevated capital expenditures and declining free cash flow. Oracle's dividend payments have not been covered by free cash flow since 2024, indicating financial strain. Despite these near-term risks, Oracle trades at a forward P/E of 16x and offers long-term growth potential, making it a buy for investors willing to tolerate short-term challenges.

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