Oracle (ORCL) Reports Fiscal Q4 EPS and Revenue Above Estimates

New Mexico Commissioner of Public Lands Stephanie Garcia Richard again denied Energy Transfer’s request to build part of a natural gas pipeline on state land for the Project Jupiter data center, according to her letter. The latest air permit filing says planned fuel cells still depend on a robust gas pipeline. A public hearing is pending; Energy Transfer has 30 days to appeal.

S&P Global downgraded Oracle’s credit rating to BBB- from BBB, citing heavy infrastructure spending and high exposure to OpenAI-related risks to debt repayment. According to Sevens Report Research, the move was largely ignored by stocks but may signal broader stress as bond spreads and high-yield yields rise while the S&P 500 nears highs. ORCL shares are down 61% since Sep 2025.

Oracle shares fell 6.25% to $124.21, after S&P Global downgraded its credit rating from BBB to BBB-, citing higher credit risk from expanding AI infrastructure. S&P projects Oracle capex of $90B-$95B for FY2027 and a free operating cash flow deficit near $42B. OpenAI is a major customer. Nvidia and Broadcom also dropped.

Oracle (ORCL) shares fell about 1% in Friday premarket as investors reduced exposure to large-cap tech. Bloomberg cited credit concerns after S&P downgraded Oracle to BBB- and Moody’s kept a negative outlook, tied to AI spending and borrowing costs. New Mexico denied gas pipeline permits for Oracle’s Project Jupiter data center. ORCL was down 0.96% to $123.02; analysts expect Sept. 8, 2026 earnings of $1.67 EPS on $19.12B revenue.

S&P downgraded Oracle to BBB- on July 9, one notch above junk, citing cash burn from a $250 billion AI data-centre expansion. Oracle’s fiscal-year free cash flow fell to about -$24 billion, with S&P estimating it could widen to -$42 billion. Shares fell nearly 6%. Oracle has $117 billion in corporate bonds outstanding and about half of remaining performance obligations tied to OpenAI.

S&P Global Ratings downgraded Oracle’s credit rating from BBB to BBB- on July 9, citing higher AI infrastructure credit risk, heavy capital spending, uncertain profitability and competition. The move follows Oracle’s lawsuit against Wisconsin’s PSC over We Energies data-center credit rules requiring a AAA- threshold and collateral. Oracle’s shares are down over 25% since suing.