Oracle said in a regulatory filing that its fiscal 2026 restructuring plan will cost about US$2.8 billion, up by roughly US$700 million, as it cuts jobs and reins in expenses while spending heavily to meet AI-driven cloud demand.

The plan includes severance, contract terminations, and other exit costs. Oracle said part of the restructuring is tied to the adoption of AI across some functions.

Investors have been weighing Oracle’s AI-driven growth against the cost of that expansion.

Morningstar analyst Luke Yang said the company’s cash flow profile is unlikely to improve soon.

Oracle has also said it plans to raise US$40 billion through debt and equity in the current fiscal year. That includes a US$20 billion stock sale completed in the first quarter.

The company reported negative free cash flow of US$5.40 billion.

🔗 Source: Reuters

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