Oracle disclosed plans to raise $40 billion over the next year to fund its data center expansion, triggering a selloff that erased more than 7 percent in after-hours trading. The database giant said it would tap $20 billion in fiscal 2027 on top of a previously announced $20 billion equity issuance, even as it left full-year revenue guidance frozen near $90 billion.

Capital expenditure surged to $16.5 billion in the quarter, pushing the annual total to $55.7 billion — well above the $50 billion target set earlier. The spending spree reflects a $300 billion commitment to OpenAI for ChatGPT infrastructure, a deal that requires Oracle to front construction costs. The company has already borrowed $25 billion this year while pledging to protect its investment-grade rating.

Shares had already fallen nearly 40 percent from their autumn peak before Wednesday's report. Fourth-quarter revenue of $19.2 billion and full-year sales of $67.4 billion both beat estimates, yet investors focused on the funding gap and reliance on a handful of hyperscale tenants. Pushback in Saline Township, Michigan has delayed projects, and the company cut over 30,000 jobs to redirect cash toward AI infrastructure.

New CFO Hilary Maxson, hired from Schneider Electric in April, inherits a $638 billion backlog of contracted future revenue alongside co-CEOs Clay Magouyrk and Mike Sicilia. The market will judge whether Oracle can convert its massive lease commitments into durable free cash flow.