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Oracle shares drop 5% despite record earnings due to investor worries over rising AI costs.

Company Fundamentals
10 Jun 2026
Market Watch
View Source
Bearish
pluang ai news

Oracle reported record revenue of $19.18 billion and exceeded earnings expectations, growing its contract pipeline to $638 billion. However, the company ended the year with a negative free cash flow of $23.69 billion. Investors remain concerned about the high costs associated with Oracle's artificial intelligence initiatives, leading to a 5% drop in the stock price after hours. The market is looking for clearer evidence that Oracle's AI investments will translate into profitable growth.

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