Oracle is under pressure from more than $100 billion in debt and massive layoffs as it pushes ahead with Larry Ellison’s 3-step transformation 

The $400 billion enterprise software and cloud infrastructure giant Oracle is in the hot seat with a fiscal third quarter earnings drop on Tuesday amid a spotlight on its heavy borrowing and negative free cash flow.  

To set the scene, at the top line analysts are expecting about 20% growth in quarterly revenues to roughly $17 billion, right in line with Oracle’s guidance of 19% to 21% growth from the prior year. Earnings per share, excluding certain items, are expected to be up about 16% to $1.71. But under the hood? There’s a lot more going on and those issues wiggling around have helped send its stock down about 20% so far in 2026. 

How Oracle’s stock fares after it reports results on Tuesday will depend largely on which storyline Wall Street chooses to focus on.

First up, job cuts. Last quarter, Oracle disclosed a 2026 restructuring plan that it expected would cost the company up to $1.6 billion primarily due to “employee severance costs.” Of that $1.6 billion, Oracle has recognized about $826 million in charges against the plan—that means Oracle still had about $788 million to go. Bloomberg Read Entire Article