Oracle expands restructuring plan by $700M amid AI buildout

• Oracle (NYSE:ORCL) expanded its 2026 restructuring plan by approximately $700 million, increasing the estimated total cost to about $2.8 billion.
• The company recorded $2.1 billion in restructuring charges through August 31 as it reduces costs while scaling AI infrastructure investments.
• Oracle spent $28.5 billion on capital expenditures during the latest quarter, primarily driven by data center expansion.

Oracle (NYSE:ORCL) disclosed that it is expanding its 2026 Restructuring Plan by approximately $700 million, bringing the estimated total cost of the program to roughly $2.8 billion.

The company said the additional costs reflect “additional actions that we expect to take,” including severance payments, contract termination fees, and other exit-related expenses.

Oracle has linked part of the workforce reduction to the company’s deployment of artificial intelligence technologies across parts of its business.

As of August 31, Oracle had recorded approximately $2.1 billion in charges related to the restructuring plan.

The cost-cutting initiative comes as Oracle accelerates spending on AI-focused data center infrastructure.

Capital expenditures reached $28.5 billion in the quarter ended August 31, compared with $8.5 billion during the same period a year earlier.

The increased investment contributed to negative free cash flow of $5.4 billion for the quarter.

To help fund its expansion, Oracle raised approximately $19.9 billion through an at-the-market stock offering, selling about 141 million shares during the quarter.

The company has said it expects to raise approximately $40 billion through a combination of debt and equity during the current fiscal year.

Despite increased spending pressures, Oracle reported strong fiscal first-quarter results, with revenue reaching $19.3 billion compared with $14.9 billion a year earlier.

Cloud revenue represented 60% of total revenue during the quarter, up from 48% in the prior-year period, reflecting accelerating demand for cloud and AI infrastructure.

Oracle also disclosed that Executive Chair Larry Ellison adopted a share trading plan allowing him to sell up to 50 million Oracle shares through October 24.