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ETFs to Bet on as Oracle Slides 10% on Massive AI Spending Plans
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Key Takeaways
Oracle plans about $70B in fiscal 2027 capital spending to expand AI data center capacity.
Oracle reported 404% multicloud revenue growth and a record $638B backlog tied to AI demand.
Oracle-heavy ETFs include IGV and JXX, with Oracle among their largest holdings.
It has been just over a week since tech giant Oracle (ORCL - Free Report) reported fourth-quarter fiscal 2026 results on June 10, and the market is still weighing the mixed signals. Although Oracle comfortably beat analysts' expectations on both the top and bottom lines for the quarter, and raised its profit guidance for fiscal 2027, its share price dropped roughly 10% in after-hours trading last Wednesday.
This initial market reaction reflected the primary anxiety stemming from ORCL’s announcement of raising its capital expenditure for fiscal 2027 by approximately $40 billion (through a combination of debt and equity financing) to fund its AI data center buildout.
In addition to this, the company’s revelation that massive investments to support the growth of its Cloud Infrastructure business pushed its full-year free cash flow to a negative $23.7 billion, continued to put downward pressure on ORCL’s share price, which dipped 8.8% since June 10.
However, all hope is not lost for Oracle. As the company remains a dominant hyperscaler and a foundational cloud provider in the AI era, its long-term upside potential remains massive, backed by a record-breaking $638 billion backlog in remaining performance obligations.
Against this backdrop, investors who want to capitalize on Oracle's long-term cloud infrastructure boom — without being exposed to the unique single-stock volatility, heavy debt loads, and company-specific financing challenges — may want to gain exposure to Exchange-Traded Funds (ETFs) with significant exposure to this tech giant. But before diving straight into these ETFs, let us break down ORCL’s overall performance in the fiscal fourth quarter across other key metrics.
A Brief Analysis of ORCL’s Q4 Results
Oracle’s fourth-quarter fiscal 2026 adjusted earnings of $2.11 per share beat the Zacks Consensus Estimate by 7.7%, while its revenues comfortably exceeded the consensus mark by 0.5%.
From a business perspective, Oracle’s multicloud revenues increased 404% year over year, while bookings surged 325%.
The company’s remaining performance obligations, expected to be recognized in the next 12 months, increased 363% year over year, driven by large-scale AI contracts.
In the fiscal fourth quarter, 35,000 GPUs from 59 separate customers were up for renewal, with 49% of those customers renewing for 92% of those GPUs. Oracle’s global GPU utilization rate is 97.5%.
During fiscal 2026, ORCL delivered more than 1.2 gigawatts to its customers. It raised $43 billion in debt financing and $5 billion in equity financing.
Looking ahead, Oracle expects to incur capital expenditures of around $70 billion in fiscal 2027.
This fund, with net assets worth $13.74 billion, offers exposure to 111 North American companies in the software industry, along with select interactive media and services firms. Of these, Oracle holds the first spot, with a 9.24% share of the fund.
IGV has gained 5.6% over the past three months. This fund charges 39 basis points (bps) as fees. It traded at a good volume of 19.56 million shares in the last trading session.
First Trust NASDAQ Technology Dividend ETF (TDIV - Free Report)
This fund, with net assets worth $4.39 billion, offers exposure to 94 technology companies. Of these, Oracle holds the second spot, with an 8.32% share of the fund.
TDIV has surged 21.3% over the past three months. This fund charges 50 bps as fees. It traded at a volume of 0.13 million shares in the last trading session.
FT Vest Technology Dividend Target Income ETF (TDVI - Free Report)
This fund, with net assets worth $489.4 million, offers exposure to 95 U.S. securities with a secondary objective of providing capital appreciation. Of these, Oracle holds the third spot, with an 8.18% share of the fund.
TDVI has rallied 18.5% over the past three months. This fund charges 75 bps as fees. It traded at a volume of 0.09 million shares in the last trading session.
This fund, with net assets worth $27.4 million, provides exposure to 23 companies with the potential for above-average growth. Of these, Oracle holds the third spot, with a 7.17% share of the fund.
JXX has soared 27.7% over the past three months. This fund charges 57 bps as fees. It traded at a volume of 1,737 shares in the last trading session.
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ETFs to Bet on as Oracle Slides 10% on Massive AI Spending Plans
Key Takeaways
It has been just over a week since tech giant Oracle (ORCL - Free Report) reported fourth-quarter fiscal 2026 results on June 10, and the market is still weighing the mixed signals. Although Oracle comfortably beat analysts' expectations on both the top and bottom lines for the quarter, and raised its profit guidance for fiscal 2027, its share price dropped roughly 10% in after-hours trading last Wednesday.
This initial market reaction reflected the primary anxiety stemming from ORCL’s announcement of raising its capital expenditure for fiscal 2027 by approximately $40 billion (through a combination of debt and equity financing) to fund its AI data center buildout.
In addition to this, the company’s revelation that massive investments to support the growth of its Cloud Infrastructure business pushed its full-year free cash flow to a negative $23.7 billion, continued to put downward pressure on ORCL’s share price, which dipped 8.8% since June 10.
However, all hope is not lost for Oracle. As the company remains a dominant hyperscaler and a foundational cloud provider in the AI era, its long-term upside potential remains massive, backed by a record-breaking $638 billion backlog in remaining performance obligations.
Against this backdrop, investors who want to capitalize on Oracle's long-term cloud infrastructure boom — without being exposed to the unique single-stock volatility, heavy debt loads, and company-specific financing challenges — may want to gain exposure to Exchange-Traded Funds (ETFs) with significant exposure to this tech giant. But before diving straight into these ETFs, let us break down ORCL’s overall performance in the fiscal fourth quarter across other key metrics.
A Brief Analysis of ORCL’s Q4 Results
Oracle’s fourth-quarter fiscal 2026 adjusted earnings of $2.11 per share beat the Zacks Consensus Estimate by 7.7%, while its revenues comfortably exceeded the consensus mark by 0.5%.
From a business perspective, Oracle’s multicloud revenues increased 404% year over year, while bookings surged 325%.
The company’s remaining performance obligations, expected to be recognized in the next 12 months, increased 363% year over year, driven by large-scale AI contracts.
In the fiscal fourth quarter, 35,000 GPUs from 59 separate customers were up for renewal, with 49% of those customers renewing for 92% of those GPUs. Oracle’s global GPU utilization rate is 97.5%.
During fiscal 2026, ORCL delivered more than 1.2 gigawatts to its customers. It raised $43 billion in debt financing and $5 billion in equity financing.
Looking ahead, Oracle expects to incur capital expenditures of around $70 billion in fiscal 2027.
Oracle-Heavy ETFs to Bet On
iShares Expanded Tech-Software Sector ETF (IGV - Free Report)
This fund, with net assets worth $13.74 billion, offers exposure to 111 North American companies in the software industry, along with select interactive media and services firms. Of these, Oracle holds the first spot, with a 9.24% share of the fund.
IGV has gained 5.6% over the past three months. This fund charges 39 basis points (bps) as fees. It traded at a good volume of 19.56 million shares in the last trading session.
First Trust NASDAQ Technology Dividend ETF (TDIV - Free Report)
This fund, with net assets worth $4.39 billion, offers exposure to 94 technology companies. Of these, Oracle holds the second spot, with an 8.32% share of the fund.
TDIV has surged 21.3% over the past three months. This fund charges 50 bps as fees. It traded at a volume of 0.13 million shares in the last trading session.
FT Vest Technology Dividend Target Income ETF (TDVI - Free Report)
This fund, with net assets worth $489.4 million, offers exposure to 95 U.S. securities with a secondary objective of providing capital appreciation. Of these, Oracle holds the third spot, with an 8.18% share of the fund.
TDVI has rallied 18.5% over the past three months. This fund charges 75 bps as fees. It traded at a volume of 0.09 million shares in the last trading session.
Janus Henderson Transformational Growth ETF (JXX - Free Report)
This fund, with net assets worth $27.4 million, provides exposure to 23 companies with the potential for above-average growth. Of these, Oracle holds the third spot, with a 7.17% share of the fund.
JXX has soared 27.7% over the past three months. This fund charges 57 bps as fees. It traded at a volume of 1,737 shares in the last trading session.