Key facts
- Oracle reported Q4 revenue of $19.18 billion, surpassing analyst expectations of $19.10 billion.
- Strong demand for cloud infrastructure services drove the revenue beat.
- Oracle's shares fell in extended trading after announcing plans to raise nearly $40 billion in fiscal 2027.
- Remaining performance obligations increased by 15.4% to $638 billion.
- Adjusted profit per share was $2.03, exceeding the analyst estimate of $1.96.
Oracle reported fourth-quarter revenue that narrowly beat Wall Street expectations, driven by strong demand for its cloud infrastructure services. The company announced total revenue of $19.18 billion for the quarter, surpassing the average analyst estimate of $19.10 billion. However, Oracle's shares fell significantly in extended trading after it announced plans to raise nearly $40 billion through a combination of debt and equity financing in fiscal 2027. Investors are scrutinizing Oracle's AI infrastructure build-out and rising debt levels, with concerns that AI tools could disrupt traditional software demand. Remaining performance obligations, a key indicator of future contracted revenue, grew 15.4% to $638 billion. Its adjusted profit of $2.03 per share for the fourth quarter exceeded expectations of $1.96.
Oracle's capital spending for 2026 exceeded its projection, reaching approximately $55.66 billion against a target of $50 billion, reflecting the significant cash burn required for AI infrastructure development. The company also stated it would raise more debt in 2027, including a previously announced $20 billion at-the-market equity issuance. The software industry faces growing investor concerns that AI tools might divert enterprise clients from traditional software by automating tasks previously handled by those products.