Microsoft Posts $182.9 Billion Operating Cash Flow, Raises Dividend to $0.98

Oracle is facing mounting pressure in credit markets as the cost of insuring its debt jumped to a record high on fears about the enormous bill for its artificial intelligence expansion. The yield on Oracle's 6.7% bonds due 2056 climbed above 8% for the first time on Thursday, according to Seeking Alpha statistics, a significant move for a company rated Baa2 by Moody's and BBB- by S&P, near the bottom of investment grade. The strain reflects Oracle's heavy spending on data centers and processing resources needed to compete in AI, which has made the company more reliant on debt financing and turned borrowing rates into a key part of the investing story. Shares of Oracle fell approximately 4% Thursday afternoon to around $139. Adding to the uncertainty, Oracle is said to have sent a force majeure notice to the developer of its Project Jupiter data center in New Mexico, an action meant to shield it from some financial exposure if regulatory and infrastructure challenges delay the facility's planned inauguration in 2028. Credit default swaps have also widened on a few big tech names as investors rethink the cost of the industry's AI infrastructure buildout, with rising Treasury yields making borrowing more expensive across the market. The next catalyst for Oracle will be whether its growing AI cloud business can generate enough growth and cash flow to match the investments required to build it.

Akamai shares surged about 13% in after-hours trading after Anthropic struck a $12 billion deal with the company for AI computing, with Akamai also discussing longer-term capital expenditure plans. The move made Akamai the biggest after-hours mover, climbing roughly 14%. In the regular session, Oracle fell 3.5% after sending a force majeure notice to a project developer, a unit of Blue Owl Capital, regarding a massive data center being built in New Mexico, a step tied to meeting power commitments that could delay rent for Oracle even as it would still owe the rent for the full lease term once payments begin. GoDaddy rose about 4.6% after the Financial Times reported that Gen Digital, the maker of Norton 360 antivirus, made an offer for the company in a deal that would roll up a number of major legacy software brands, though the talks are in early stages and may not lead to a deal; Gen Digital shares fell more than 12%. MGM Resorts dropped 11% after Barry Diller's People Inc dropped plans to acquire the rest of the casino giant, with Diller saying the mix was not coming together as hoped. Everpure was the top S&P 500 gainer, closing up about 11% after the data storage company forecast 2028 revenue above the average analyst estimate, drawing price target hikes from Citi to 160 from 130 a share and from B of A to 180 from 150 a share.

Oracle has sent a force majeure notice to Stack Infrastructure, the developer of the massive New Mexico data center known as Project Jupiter, as it seeks to protect itself financially if the facility is delayed. Oracle is the main tenant of the project, which is being developed by Stack Infrastructure, a portfolio company of Blue Owl Capital, and is designed for 2.45 gigawatts of capacity, making it one of the larger facilities tied to the broader Stargate AI infrastructure buildout involving Oracle, OpenAI and SoftBank. According to Bloomberg, Oracle wants to defer payments if the site misses its planned 2028 opening, though it remains unclear whether the notice would release Oracle from any existing financial obligations. About 20 banks provided an $18 billion loan to support development of the campus, meaning any extended delay could affect more than just Oracle's occupancy timeline. The market reaction was immediate: Oracle shares fell about 4% in premarket trading, Blue Owl dropped roughly 4%, Bloom Energy, whose fuel cells are expected to help power the site, fell 5%, and SoftBank shares declined about 6%.