Key Points
Oracle shares fell 5.4% on Sept. 1, 2026, as a global bond sell-off pushed long-term government borrowing costs to multi-decade highs.
Oracle burned cash building AI data centers last fiscal year: free cash flow was negative $23.7 billion in fiscal 2026, per the company.
Oracle raised $43 billion in debt financing in fiscal 2026 and expects roughly $40 billion more in combined debt and equity financing in fiscal 2027.
Oracle Corp (NYSE: ORCL) stock is falling today, down 5.4% as of 1:52 p.m. ET on Tuesday, Sept. 1, 2026, as bond yields continue to rise, which could have serious consequences for the debt-laden tech giant.
The S&P 500 and Nasdaq Composite are both down, sliding 0.7% and 0.9%, respectively.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The 30-year Treasury yield is near a 20-year high
As U.S. 30-year treasury yields hover near 20-year highs, major bond markets around the world are setting their own records. In Japan, 10-year notes hit their highest level since 1996, while in the U.K., yields on the 30-year Gilt set a near 30-year record.
Bond markets are uneasy over persistent inflation and global conflicts, especially the Iran war, which has reignited in recent days. Oil prices are once again moving higher.
Oracle's free cash flow was negative $23.7 billion in fiscal 2026
This has consequences for businesses across the market, but Oracle is especially sensitive to changes in the bond market. That's because it is currently spending enormous sums in a race to build AI data centers as quickly as possible.
Image source: Getty Images.
And it's spending considerably more than it's taking in -- free cash flow (FCF) dropped to negative $23.7 billion last year. To fund the difference, Oracle raised $43 billion from the debt market last year and expects to raise another $20 billion in the current year, in addition to a $20 billion equity raise.
Rising yields mean borrowing becomes more expensive.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.