ORCL Stock Inches Higher Overnight: Is Another Round Of Layoffs Coming?

• Oracle has asked managers to draw up a plan, Business Insider reported.
• The FY26 workforce adjustments were ​in response to various factors, including management and product changes, performance issues, strategic shifts and acquisitions, Oracle said in its annual report.
• Analysts expect ORCL to climb 70% from the current levels.

Oracle Corp. is planning another round of layoffs this month as it racks up billions in debt to fund AI infrastructure, Business Insider reported on Tuesday, citing people familiar with the plans and an internal document.

ORCL stock has shown some strength this month after hitting a 52-week low in July. Shares gained 1.2% in overnight trading late Tuesday following the report.

The cuts could reach double-digit percentages on some teams, according to the report. Oracle has requested managers provide lists of affected employees, with the intention of reducing payroll by the time the second quarter begins on Sept. 1.

The reported plans follow significant retrenchment in the recent past. Oracle reduced 21,000 full-time roles in its last fiscal year, which ended in May 2026, according to its annual report. 

Workforce shrank 13% to 141,000 as of May 31, and the company spent $1.84 billion in severance payments and ​other exit costs related to the restructuring activities in the year. The figure was significantly higher than the $374 million spent in fiscal year 2025.

ORCL’s Business Booms, But Stock Trails On Debt Concerns

A smaller player in cloud computing, Oracle has recently landed several large data-center agreements with OpenAI and Meta, strengthening its push to challenge industry leaders such as Amazon and Microsoft.

Oracle’s remaining performance obligations (RPOs) surged 363% to a record $638 billion in the fiscal fourth quarter, surpassing those of both Alphabet and Microsoft.

That has triggered a rapid debt-fueled capacity expansion at the ‘Big Red,’ which has left some investors concerned over high leverage and reliance on a handful of customers.

Oracle is raising $40 billion in debt and equity this fiscal year. In the fiscal year just ended, Oracle raised $43 billion in debt financing and $5 billion in equity. Oracle’s total liabilities, including debt, jumped by 48% to $218.7 billion in the fourth quarter – the sharpest surge on record.

Retail, Analyst View On ORCL

On Stocktwits, retail sentiment for ORCL dipped over the past week and was ‘bearish’ on Tuesday. Still, several traders said CoreWeave’s strong results underscored robust demand for cloud infrastructure, setting up a favorable backdrop for Oracle’s business as well.

“$ORCL CoreWeave right on time. Theory proven. Buy the dip,” a trader said. Another wrote: “$ORCL this company has been around forever. They know how to manage debt and can recognize when it gets out of control. I’m not worried.”

CoreWeave’s second-quarter revenue more than doubled, with backlog crossing $100 billion, and the firm raised its 2026 revenue target, according to its latest report issued on Tuesday.

Currently, 36 out of 44 analysts rate the stock ‘Buy’ or higher, seven rate it ‘Hold,’ and one rates it ‘Strong Sell,’ per Koyfin data. Their average price target of $246.67 implies a 70% upside from the stock’s closing price on Tuesday.

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