Oracle CEO Clay Magouyrk speaks during a Q&A after a tour of the OpenAI data center in Abilene, Texas, on Sept. 23, 2025.
Shelby Tauber Reuters
The Oracle reported better-than-expected earnings and revenue for the fiscal fourth quarter on Wednesday while raising its annual profit forecast. The stock fell 10% in extended trading as the company plans to raise more capital to fund its AI development.
Here’s how the company fares against the LSEG consensus:
- Earnings per share: $2.03 adjusted vs. $1.96 expected
- Net worth: $19.18 billion vs. $19.10 billion expected
Revenue rose 21% year over year in the quarter, which ended May 31, according to the statement. Net income rose to $4.22 billion, or $1.45 per share, from $3.43 billion, or $1.19 per share, a year earlier. Adjusted earnings do not include the impact of stock-based compensation.
The company maintained its previous revenue guidance of $90 billion for fiscal year 2027, while raising its forecast for adjusted earnings per share to $8.05. Analysts were projecting $8.01 per share and $88.9 billion in revenue.
Oracle said it foresees raising $40 billion in debt and equity financing, including a previously announced $20 billion share sale. That’s after raising $43 billion in debt and $5 billion in debt by 2026, a move that worries investors because of uncertainty over whether demand for artificial intelligence can justify that new money.
For the fiscal year, Oracle reported $23.7 billion in negative free cash flow, with depreciation nearly doubling to $7.62 billion. Capital expenditures increased 162% to $55.7 billion.
The company reported $1.72 to $1.76 in adjusted earnings per share for the fiscal first quarter, with revenue growth of 27% to 29%. Analysts polled by LSEG had expected $1.68 in adjusted earnings per share, and revenue of $19.06 billion, representing 28% growth.
Revenue from cloud computing increased 47% in the quarter to $9.91 billion. Analysts polled by StreetAccount were expecting $9.97 billion. Software revenue, including licenses and support, came in at $6.82 billion, down 2% but above StreetAccount’s $6.93 billion consensus.
Cloud infrastructure revenue jumped 93% to $5.8 billion. Amazon Web Services, the market leader, generated $37.59 billion in revenue in the March quarter.
Oracle’s remaining operating liability, including unrecognized revenue, reached $638 billion on May 31, up 363%. Analysts polled by StreetAccount were looking for $595.67 billion.
“The majority of RPO increases in both Q3 and Q4 were large AI contracts where the customer paid Oracle upfront to purchase GPUs, or the customer purchased and supplied GPUs from Oracle,” the company said in a statement, referring to the graphics processing units.
These two methods reduce the total Oracle will need to build a data center, the company said.
Bank of America analysts, who recommend buying Oracle shares, said more than 50% of the remaining operating liability comes from OpenAI.
The company is looking to bring online about one gigawatt of computing power this quarter, roughly the same amount through fiscal 2026, Oracle CEO Clay Magouyrk said on a conference call with analysts.
During the quarter, Oracle hired Schneider Electric executive Hilary Maxson to be its new chief financial officer. Related Digital and Blackstone say they have secured a $16 billion Oracle data center financing in Michigan.
Oracle’s total capital spending in fiscal 2027 will be about $70 billion, excluding $20 billion to $25 billion in upfront payments from customers and timing impacts, Maxson said.
As of Wednesday’s close, the stock was up 3% so far in 2026, while the S&P 500 had gained 6% over the same period.
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