Barclays has reversed its negative stance on Oracle bonds, moving from an underweight recommendation in November 2025 to a more favorable view in February 2026, ahead of the investor day scheduled for October 28, 2026. The bank believes Oracle’s investments in artificial intelligence infrastructure could strengthen the appeal of its debt, which totals approximately $169 billion, although the credit default swap market remains cautious, with five-year spreads reaching 295 to 300 basis points. Oracle plans to raise $45 billion to $50 billion in 2026 to expand its data centers, while S&P has lowered its rating to BBB-, the lowest level still considered investment grade. In the first quarter of fiscal 2027, revenue reached $19.3 billion, up 30%, cloud infrastructure sales rose 121%, and the backlog stood at $664 billion. Investors will seek clarity on the mix of debt and equity, as a further downgrade could force some institutional funds to sell their holdings.
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