Oracle shares fall premarket on $45-$50 billion AI cloud funding plan

Shares of Oracle fall 4.7% in premarket trade after the co said it expects to raise $45 bln to $50 bln in 2026 to build additional cloud infrastructure capacity

Co says funding will come from a mix of equity and debt, underscoring the scale of its AI-driven expansion

About half of the funding is expected from equity-linked and common equity, including mandatory convertible preferred securities and a new at-the-market program of up to $20 bln

The remainder will be raised via senior unsecured bond issuance planned for early 2026

Concerns have intensified after bondholders sued Oracle in January, alleging the company concealed the need for significant additional borrowing; credit default swap costs spiked in December to a five-year high

ORCL down 15.5% YTD