Oracle Is Not Done Cutting: The Math Is Painfully Clear

Oracle is not done cutting and the math is painfully clear. The graph below shows debt and free cash flow from fiscal years 2016 to 2028. The first bar is Oracle before #AI, when debt was high but free cash flow comfortably serviced it. Cerner Corporation is broken out separately to represent the acquisition as not only unfortunately timed, but also the divestable asset it is.

Green shading represents the accretive impact of the recent layoffs, and it is not nearly enough. AND … the graph assumes OpenAI/Stargate revenue materializes on schedule and Oracle's legacy #OCI, license, support and subscription revenues are stable and growing.