Meta, Oracle face bond market scrutiny amid AI spending surge

Meta and Oracle are both drawing heightened scrutiny from credit investors as their capital expenditures balloon to fund data center buildouts. Oracle’s fiscal 2026 capital expenditure hit $55.66 billion, overshooting its own $50 billion target. The company is eyeing up to $95 billion in capex for fiscal 2027, a figure that includes customer repayments. Meta, meanwhile, tapped the bond market for $30 billion in October 2025, its largest debt offering of the year, to bankroll its own AI infrastructure push. Oracle’s credit profile takes a hit S&P Global downgraded Oracle’s credit rating to BBB- in July 2026, citing elevated debt levels. That puts the company just one notch above junk status. Oracle’s 5-year credit default swap rates traded at multi-year highs in July 2026. To fund its ambitions, Oracle plans to raise nearly $40 billion through a combination of debt and equity in 2027. A $20 billion equity issuance has already been announced. Meta doubles down with record bond sales Meta’s $30 billion bond issuance in late 2025 was driven by strong investor demand, with proceeds flowing into data infrastructure designed to support the company’s AI projects. Meta is also securing ...