Technology • Cloud Infrastructure & Enterprise Database Software • SIC 7372
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MKT CAP: $405.97B • VOL: 40.05M
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ACCESSION DIFF: 0000950170-25-087926 (2025-06-18)
──► 0001193125-26-277521 (2026-06-22)
Oracle Corporation's FY2026 10-K (accession 0001193125-26-277521) registers an escalating structural risk profile driven by aggressive capital structure changes and ballooning AI datacenter obligations. The introduction of 6.50% Series D Mandatory Convertible Preferred Stock directly signals debt-capacity exhaustion and rising cost of capital following an expansion of common shares outstanding by 71.6 million shares. Heightened dependency on GPU allocation alongside sovereign export friction creates acute margin and refinancing headwinds across the OCI infrastructure footprint.
HUNK 01 // ITEM 7 // MD&A — CAPITAL STRUCTURE & EXPENSIVE HYBRID FINANCING
SEVERITY: CRITICAL [-] PRIOR FILING: FY2025 10-K (Filed 2025-06-18) REMOVED / SUPERSEDED
Common Stock, par value $0.01 per share; 3.125% senior notes due July 2025
[+] CURRENT FILING: FY2026 10-K (Filed 2026-06-22) INSERTED DISCLOSURE
Depositary Shares, each representing a 1/2,000th interest in a share of 6.50% Series D Mandatory Convertible Preferred Stock, par value $0.01 per share
FORENSIC TRANSLATION // Oracle is forced to tap expensive hybrid equity at a punishing 6.50% coupon rather than refinancing exclusively through low-rate investment-grade debt. This signals strain on leverage covenants (Debt/Equity at 1.94x and Altman Z near distress thresholds at 1.54) as OCI capex burns through cash flow, locking in near-term cash dividend drain and future EPS dilution upon mandatory conversion.
HUNK 02 // ITEM 1A // RISK FACTORS — EQUITY DILUTION & CAPITAL RAISING CAPACITY
SEVERITY: MEDIUM [-] PRIOR FILING: FY2025 10-K (Filed 2025-06-18) REMOVED / SUPERSEDED
Number of shares of common stock outstanding as of June 13, 2025: 2,808,833,000 .
[+] CURRENT FILING: FY2026 10-K (Filed 2026-06-22) INSERTED DISCLOSURE
Number of shares of common stock outstanding as of June 12, 2026: 2,880,471,000 .
FORENSIC TRANSLATION // The share count expanded by 71,638,000 common shares YoY (~2.55% net dilution), confirming Oracle has materially curtailed stock buybacks to conserve liquidity for AI cluster buildouts and employee equity retention. Common shareholders face persistent dilution to fund datacenter hardware purchases while legacy high-margin on-premise license support flattens.
HUNK 03 // FOOTNOTES // COMMITMENTS — DEBT RETIREMENT & REFINANCING PRESSURE
SEVERITY: CRITICAL [-] PRIOR FILING: FY2025 10-K (Filed 2025-06-18) REMOVED / SUPERSEDED
3.125% senior notes due July 2025 registered under Section 12(b)
[+] CURRENT FILING: FY2026 10-K (Filed 2026-06-22) INSERTED DISCLOSURE
Common Stock, par value $0.01 per share registered; Depositary Shares Series D registered under Section 12(b)
FORENSIC TRANSLATION // Maturity of cheap 3.125% legacy paper without clean like-for-like term debt rollovers forced management into structural hybrid equity. Swapping maturing low-rate fixed obligations for preferred shares carrying more than double the coupon creates a structural net interest and dividend drag on trailing free cash flow.