Oracle shares dropped approximately 7% on October 14, 2026, reaching a price near $133. This decline occurred as investors reacted to a September inflation report showing a 3.6% year-over-year increase in the Consumer Price Index, which exceeded market expectations and fueled concerns over potential interest rate hikes.
The market downturn affected several major AI infrastructure companies, including NVIDIA, AMD, and Microsoft. Oracle faces specific scrutiny due to its heavy capital expenditures, which have reached tens of billions of dollars. This spending has resulted in negative free cash flow, forcing the company to rely on debt financing.
Over the past two years, Oracle's long-term debt has doubled to exceed $160 billion. Consequently, S&P downgraded the company's credit rating to BBB-, placing it one level above junk status. Investors are also monitoring the financial health of key clients like OpenAI, which reportedly revised its annualized revenue guidance down to $50 billion from previous estimates of $70 billion.
