Oracle Has Taken on Serious Debt to Fund Its AI Ambitions. Can the Gamble Pay Off?

By Reuben Gregg Brewer – Apr 7, 2026 at 10:15PM ESTKey PointsOracle's long-term debt increased roughly 66% since the start of 2025.The company is leaning into artificial intelligence, and so far, that bet is paying off. Oracle (ORCL 1.79%) is making a bold move, and investors are not exactly pleased with the decision. At least that's the logical conclusion to draw from the fact that, as of this writing, the stock is down 55% from its 52-week high. That said, so far the company's big gamble appears to be working out as planned. Here's what you need to know. Oracle is leaning into artificial intelligence Artificial intelligence (AI) is the latest technology craze, and many people believe, quite realistically, that it will change the world. Oracle's enterprise application business could be impacted by AI, so it makes sense that the company is working to find a way to benefit from the technology. At this point, it is helping to build out the infrastructure needed to support AI. Image source: Getty Images. Building AI infrastructure comes with huge upfront costs. That is part of the reason why Oracle's long-term debt load has risen nearly 66% since the start of 2025. That's a massive increase in a very short period of time, and investors are probably justifiably worried. And yet, the news is actually fairly positive around the technology giant's AI investment. A lot of work has been done, and there's more to be done For starters, Oracle's cloud infrastructure revenue rose 84% year over year in the fiscal third quarter of 2026. And at $4.9 billion, this is not a small business. Essentially, Oracle's AI infrastructure investment is already rewarding the company. ExpandNYSE: ORCLOracleToday's Change(-1.79%) $-2.61Current Price$142.93Key Data PointsMarket Cap$419BDay's Range$139.95 - $144.5352wk Range$121.23 - $345.72Volume558KAvg Vol27MGross Margin64.30%Dividend Yield1.37% That said, the company's remaining performance obligations, which are essentially its backlog, rose 325% year over year. The backlog sits at a massive $553 billion. While it is entirely possible that some of that work won't materialize as expected, it is very clear that customers are happily working with Oracle as they look to build their AI businesses. It is too soon to say that Oracle's decision to leverage up so it can lean into AI has paid off. However, it is clear that the company's efforts are well received by the technology sector, even if Wall Street appears skeptical of Oracle's ambitions. Understand the risks, but Oracle looks relatively cheap Oracle is a well-established technology company with a long history. It is not a money-losing AI start-up hoping to leverage a new technology to break into the industry. Long-term investors might want to take a closer look, given the growth of its AI business and its huge backlog. And, given the dramatic share price decline, the stock looks cheaper than it has in a few years, with its price-to-sales and price-to-earnings ratios both back below their five-year averages.Read NextApr 7, 2026 •By Adam LevyBest Growth Stocks to Buy in 2026Apr 7, 2026 •By Parkev Tatevosian, CFAHuge News for Oracle Stock InvestorsApr 7, 2026 •By Jeremy BowmanBest AI Stocks to Buy in 2026 and How to Invest in ThemApr 6, 2026 •By Manali Pradhan, CFAOracle Shares Are Down 24% So Far in 2026 Amid AI Bubble Fears.

Can It Still Come Out on Top?Apr 5, 2026 •By Reuben Gregg BrewerWall Street Is Wrong About Oracle -- This $553 Billion Backlog Tells a Different Story for 2026Apr 2, 2026 •By Anthony Di PizioOracle Stock Hasn't Been This Cheap in 3 Years -- But Is It a Buy Right Now?About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedOracleNYSE: ORCL$143.17(-1.63%)-$2.37*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.