Oracle Refutes Report Claiming Microsoft Canceled $3 Billion Cloud Infrastructure Deal

Key Stats for Oracle Stock

• Price change for Oracle stock: -3%
• $ORCL Share Price as of Jun. 17: $184
• 52-Week High: $346
• $ORCL Stock Price Target: $255

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What Happened?

Oracle (ORCL) stock slipped about 3% after Business Insider reported that Microsoft abandoned negotiations to lease Oracle cloud infrastructure due to security and compliance concerns. The deal could have been worth more than $3 billion.

According to the report, Microsoft was looking to lease computing capacity from Oracle to support AI workloads.

But the talks broke down after Microsoft reportedly determined Oracle was unwilling to implement an additional security framework required to handle certain U.S. government data.

Oracle pushed back on the reporting. The company said the article’s details were inaccurate and maintained that Microsoft remains a partner and customer.

The story reflects something broader happening in the AI infrastructure market right now.

• Even the largest tech companies are scrambling for computing capacity.
• Microsoft recently projected $190 billion in capital expenditures for calendar year 2026, largely to expand data centers.
• The company has also reportedly turned to Amazon for extra capacity to support its GitHub business after outages.
• The demand for AI computing is simply outpacing what any one company can build on its own.

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What the Market Is Telling Us About Oracle Stock

Oracle stock investors have a lot to work with beyond this single report. The company just posted a record quarter.

• Q4 revenue grew 21%, cloud infrastructure revenue nearly doubled at 93% growth, and
• RPO hit $638 billion — up 363% year-over-year.
• That backlog reflects long-term committed customer contracts and gives Oracle exceptional visibility into future revenue.
• The company also signed $67 billion in new AI infrastructure contracts in Q4 alone.
• GPU utilization across Oracle’s global network is running at 97.5%.
• FY2027 guidance calls for 34% revenue growth in constant currency.

Oracle stock is almost flat over the past year and the fundamental story remains intact. Though expectations are really high from Oracle.

A single failed negotiation, especially one that the company is disputing the details of, is unlikely to change the long-term trajectory. That said, any deal this size getting attention from investors is understandable.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!