Oracle is under pressure from more than $100 billion in debt and massive layoffs as the company pushes forward with Larry Ellison’s three-stage transformation

The $400 billion enterprise software and cloud infrastructure giant oracle is in crisis with a fiscal third-quarter profit drop on Tuesday amid heavy borrowing and negative free cash flow.

To create the framework, the analysts are at the top expect about 20% growth in quarterly revenue to about $17 billion, which is right in line with Oracle’s forecast of 19% to 21% year-over-year growth. Earnings per share, excluding certain items, are expected to rise approximately 16% to $1.71. But under the hood? There’s a lot more going on, and these issues have contributed to the stock’s decline of about 20% so far in 2026.

How Oracle stock fares after Tuesday’s earnings release will largely depend on what action Wall Street focuses on.

First: job cuts. Last quarter, Oracle announced a 2026 year Restructuring plan The company was expected to cost up to $1.6 billion, primarily due to “employee severance costs.” Of which $1.6…