Oracle reported better-than-expected earnings and revenue for its fiscal fourth quarter ended May 31, while raising its profit forecast for the year and announcing plans to raise $40 billion through debt and equity financing, including a $20 billion share sale announced earlier. The company's stock dropped 5% in extended trading on Wednesday as investors weighed concerns about whether AI demand can justify the capital raise, following Oracle's $43 billion debt and $5 billion equity raise in fiscal 2026. The earnings beat comes as Oracle expands its cloud infrastructure to meet growing demand from AI customers, with the company reporting $23.7 billion in negative free cash flow for the fiscal year.
Oracle Reports Fiscal Q4 Financial Results
Oracle posted adjusted earnings per share of $2.11 for the quarter ended May 31, surpassing the LSEG consensus estimate of $1.96. Revenue reached $19.18 billion, exceeding the $19.10 billion expected by analysts. Revenue increased 21% year over year, according to a company statement.
Net income rose to $4.22 billion, or $1.45 per share, from $3.43 billion, or $1.19 per share, a year ago. Adjusted earnings exclude the impact of stock-based compensation.
Cloud offerings revenue increased 47% in the quarter to $9.91 billion, slightly below the StreetAccount consensus of $9.97 billion. Software revenue, including licenses and support, totaled $6.82 billion, down 2% but above StreetAccount's $6.93 billion consensus. Cloud infrastructure revenue jumped 93% to $5.8 billion.
Oracle Announces Fiscal 2027 Guidance and $40 Billion Capital Raise
Oracle maintained its previous revenue guidance of $90 billion for the 2027 fiscal year, while lifting its forecast of adjusted earnings per share to $8.05. Analysts had been projecting $8.01 per share and $88.90 billion in revenue.
The company said it foresees raising $40 billion through debt and equity financing, including a $20 billion share sale it announced earlier. This follows Oracle's $43 billion debt raise and $5 billion equity raise in fiscal 2026, a move that concerned investors due to uncertainty about whether demand for artificial intelligence can justify that much new capital.
For the fiscal first quarter, Oracle called for $1.72 to $1.76 in adjusted earnings per share, with 27% to 29% revenue growth. Analysts polled by LSEG had been expecting $1.68 in adjusted earnings per share, along with $19.06 billion in revenue, implying about 28% growth.
Oracle Cloud Business Posts 47% Revenue Growth
Oracle's remaining performance obligation, including revenue that has not been recognized, reached $638 billion on May 31, up 363%. Analysts polled by StreetAccount had projected $595.67 billion. Bank of America analysts, who recommend buying Oracle shares, said over 50% of the remaining performance obligation comes from OpenAI.
Cloud infrastructure revenue jumped 93% to $5.8 billion in the quarter. By comparison, the market-leading Amazon Web Services cloud generated $37.59 billion in the March quarter.
Oracle Hires CFO and Secures Michigan Data Center Funding
During the quarter, Oracle hired Schneider Electric executive Hilary Maxson to be its new chief financial officer. Related Digital and Blackstone said they secured funding for a $16 billion Oracle data center site in Michigan.
As of Wednesday's close, Oracle is up 3% so far in 2026, while the S&P 500 has gained 6% in the same period. Executives will discuss the results on a conference call starting at 5 p.m. ET.
FAQ
What were Oracle's fiscal Q4 earnings results for the quarter ended May 31?
Oracle reported adjusted earnings per share of $2.11, beating the LSEG consensus estimate of $1.96, with revenue of $19.18 billion exceeding the expected $19.10 billion. Revenue increased 21% year over year, and net income rose to $4.22 billion, or $1.45 per share, from $3.43 billion, or $1.19 per share, a year ago.
How much capital does Oracle plan to raise and why did the stock drop?
Oracle said it foresees raising $40 billion through debt and equity financing, including a $20 billion share sale announced earlier. The stock dropped 5% in extended trading on Wednesday as investors weighed concerns about whether AI demand can justify the capital raise, following Oracle's $43 billion debt and $5 billion equity raise in fiscal 2026.
What is Oracle's fiscal 2027 guidance?
Oracle maintained its revenue guidance of $90 billion for fiscal 2027 while raising its adjusted earnings per share forecast to $8.05. For the fiscal first quarter, the company called for $1.72 to $1.76 in adjusted earnings per share with 27% to 29% revenue growth.
