TLDR
- A 2025 breach at Oracle’s health unit, tied to old Cerner servers, exposed data for nearly 20 million people, the Texas AG says.
- Compromised data may include Social Security numbers, addresses, diagnoses, medications and test results.
- Separately, Rockland Trust cut its ORCL stake by 40%, though other big investors added shares.
- ORCL opened Tuesday at $142.47, up 0.1%, well off its 52-week high of $322.54.
- Oracle’s Q1 earnings beat estimates, but insider selling and a Michael Burry warning on its AI backlog add pressure.
A cybersecurity breach that hit Oracle’s healthcare unit last year compromised the personal data of almost 20 million people. The scale of the incident was revealed Friday in a report from the Texas attorney general’s office.
ORCL stock opened Tuesday at $142.47, up roughly 0.1% on the day. That’s far below its 52-week high of $322.54, hit earlier this year.
The breach traces back to old servers from Cerner Corp, the health records company Oracle bought in 2022 for $28 billion. Oracle said the data hadn’t yet been moved to its cloud storage when hackers got in.
According to the Texas report, Social Security numbers, home addresses and medical information were taken. About 3 million of the affected people are Texas residents.
Oracle first told customers about the attack in March 2025. At the time, the company said the breach occurred sometime after January 22 of that year.
Two of Oracle’s healthcare customers, Christus Health and Tri-City Medical Center, confirmed they were affected. They said exposed records could include doctors’ names, diagnoses, prescribed medicines and test results.
Oracle declined to comment on the new disclosure Monday. The Texas AG’s office did not respond to requests for comment either.
Who Else Oracle Serves
Oracle’s healthcare clients aren’t just hospitals. The Department of Defense and the Department of Veterans Affairs both use Oracle’s health systems.
A VA spokesperson said at the time of the original 2025 disclosure that the agency wasn’t affected. It’s still unclear exactly how deep the breach ran into other federal systems.
The FBI investigated the hack, along with reports that attackers tried to extort ransom payments from medical companies. Bloomberg first reported on those ransom attempts back in March 2025.
Investor Moves and Market Reaction
Away from the breach news, institutional trading in ORCL has been mixed. Rockland Trust Co. sold 6,347 shares last quarter, cutting its position by 40%, leaving it with 9,480 shares worth about $1.3 million.
Other investors went the opposite direction. Cardano Risk Management boosted its stake by 882%, while Auto Owners Insurance grew its holding by over 19,000%.
Oracle’s fundamentals still look solid on paper. The company posted Q1 earnings of $1.92 per share, beating estimates of $1.74, with revenue up nearly 30% year over year to $19.34 billion.
A quarterly dividend of $0.50 per share is set to pay out October 23rd, giving a 1.4% annualized yield. Analysts carry a “Moderate Buy” consensus with an average price target of $251.72.
Not everyone’s convinced, though. Investor Michael Burry flagged concerns that Oracle’s huge AI backlog may be masking financial strain, pointing to negative free cash flow and rising debt.
Insider activity has also leaned cautious lately. In the past 90 days, insiders sold 36,075 shares worth $5.3 million, even as one director bought 25,000 shares in late September.
Oracle also faces a force majeure notice tied to its New Mexico AI data center project, Project Jupiter, with power and construction delays cited as the cause.
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