New York, Feb 11, 2026, 12:00 EST — Regular session.
- Oracle shares down about 2.4% in midday trade, reversing part of Monday’s jump
- Company says U.S. health agency CMS picked Oracle Cloud Infrastructure for migration work
- Analysts stay split as Wall Street weighs AI-driven spending, funding and cash-flow strain
Oracle shares fell about 2.4% to $156 in midday trading on Wednesday, pulling back after a sharp bounce earlier in the week.
The move matters because Oracle has become a lightning rod for a broader repricing in software, where investors are trying to sort real demand from expensive buildouts. Oracle’s cloud push is drawing attention as the sector trades on fears that fast-moving AI tools could undercut older software models.
Strategists at JPMorgan said the recent drop in software stocks has priced in “worst-case” disruption scenarios that are unlikely to play out over the next three to six months, even as volatility stays high. The S&P 500 software and services index fell as much as 17% in six sessions through last Thursday, before rebounding, the bank noted. (Reuters)
At the same time, the AI arms race is forcing big tech to fund more concrete assets — data centers and chips — and markets are watching how companies pay for it. Alphabet’s rare 100-year bond sale this week underscored the shift, with Reuters calculations putting expected 2026 capital spending by Alphabet, Microsoft, Amazon and Meta at at least $630 billion. (Reuters)
Oracle on Wednesday pointed to fresh demand signals, saying the Centers for Medicare & Medicaid Services selected Oracle Cloud Infrastructure to migrate certain on-premises workloads. “CMS’ programs are vital to the wellbeing of many Americans, a responsibility that demands uncompromising security, reliability, and fiscal stewardship,” said Kim Lynch, Oracle’s executive vice president for Government, Intelligence and Defense. (Oracle)
A day earlier, Oracle announced new process-manufacturing features in its Fusion Cloud Supply Chain & Manufacturing suite, pitching tighter controls for regulated industries. “The latest innovations in Oracle Cloud SCM help customers adapt production in real time,” said Derek Gittoes, a group vice president in Oracle’s SCM product management. (Oracle)
On the Street, D.A. Davidson analyst Gil Luria upgraded Oracle to buy this week, arguing the selloff had better captured the risks around Oracle’s deepening exposure to OpenAI-related demand. “In the past, we had been very critical of Oracle and OpenAI, but believe the market is now more appropriately reflecting the risks involved,” Luria said. (The Motley Fool)
Others are leaning the other way. Melius analyst Ben Reitzes downgraded Oracle to hold, citing weak cash generation and uncertainty around turning AI spending into durable profits, and said the company should be valued “more akin to an infrastructure company vs. a software company.” (Finviz)
Oracle has also tried to get ahead of the funding question. The company said on Feb. 1 it expects to raise $45 billion to $50 billion in gross proceeds during calendar 2026, including an at-the-market program — a facility that allows a company to sell shares into the market over time — of up to $20 billion, plus a one-time investment-grade bond deal early in the year. (Oracle)
The risk for holders is straightforward: if demand slips or buildouts take longer, the spending and financing could bite harder than bulls expect, and any equity issuance can dilute existing shareholders. The broader software shakeout also means bad headlines elsewhere can still spill into Oracle’s tape.
Investors’ next hard checkpoint is Oracle’s fiscal third-quarter earnings, expected around March 9, with focus on cloud infrastructure growth, capital spending and any detail on financing cadence. (Investing)
