Downfall of a Wall Street darling: Why Oracle shares crashed 65% from peak

Oracle shares have fallen 65 percent from their peak as Wall Street turns cautious about the heavy capital expenditure required to fulfil its massive cloud and AI order book. Despite record Q4 and FY26 results with Oracle Cloud Infrastructure revenue rising 93 percent and remaining performance obligations touching 638 billion dollars, concerns over around 55.66 billion dollars in FY26 capex, planned debt raising in 2027, credit rating downgrade from BBB, and concentration of backlog in a few AI customers like OpenAI have pressured the stock. The fall reflects a wider reset in AI-linked names as investors question returns on aggressive data-centre spending.