Oracle Falls Most in Six Months on Mounting Data Center Costs

Oracle Corp.shares declined by the most in six months after the company reported quarterly capital expenses that were higher than estimates, raising investor concerns about the profitability of the AI infrastructure business.

Capital expenditures, largely a measure of data center spending, were about $16.5 billion in the period ended May 31, bringing the annual total to $55.7 billion — higher than Oracle’s projection for $50 billion in spending.

The company expects to spend about $70 billion on net capital expenditures in the current fiscal year, which ends in May 2027, Chief Financial Officer Hilary Maxson said during a conference ...