Oracle CEO Clay Magouyrk speaks during a Q&A session following a tour of the OpenAI data center in Abilene, Texas, on September 23, 2025.
Shelby Tauber | Reuters
oracle reported better-than-expected fiscal fourth-quarter profits and sales on Wednesday, while also raising its full-year profit forecast. The company plans to raise more money to fund its AI buildout, and shares fell 5% in after-hours trading.
Here’s how the company performed compared to the LSEG consensus:
Earnings per share: $2.11 adjusted vs. $1.96 expected Revenue: $19.18 billion vs. $19.1 billion expected
Sales for the quarter ended May 31 increased 21% compared to the same period last year, the company said in a statement. Net income was $4.22 billion, or $1.45 per share, up from $3.43 billion, or $1.19 per share, in the year-ago period. Adjusted earnings do not include the impact of stock-based compensation.
The company maintained its previous revenue guidance of $90 billion for fiscal 2027, while raising its adjusted earnings per share forecast to $8.05. Analysts had expected earnings of $8.01 per share and revenue of $88.9 billion.
Oracle said it expects to raise $40 billion through debt and equity financing, including a previously announced $20 billion stock sale. This comes after raising $43 billion in debt and $5 billion in equity in fiscal 2026, a move that investors were concerned about because of uncertainty whether demand for artificial intelligence would justify that much new capital.
For the fiscal year, Oracle reported negative free cash flow of $23.7 billion.
The company expected adjusted earnings per share to be between $1.72 and $1.76 for the fiscal first quarter and revenue to increase 27% to 29%. Analysts surveyed by LSEG expected adjusted earnings per share of $1.68 and revenue of $19.06 billion, suggesting growth of about 28%.
Revenue from cloud products increased 47% to $9.91 billion in the quarter. Analyst estimates compiled by Street Account were for $9.97 billion. Software revenue, including licenses and support, totaled $6.82 billion, down 2% but ahead of the StreetAccount consensus of $6.93 billion.
Cloud infrastructure revenue increased 93% to $5.8 billion. lead the market Amazon Web Services Cloud generated $37.59 billion in the March quarter.
Oracle’s remaining performance obligations, including unrecognized revenue, increased 363% to $638 billion as of May 31. Analyst estimates compiled by Street Account were for $595.67 billion. Analysts at Bank of America, which recommends buying Oracle stock, said more than 50% of the remaining performance obligations are due to OpenAI.
During the quarter, Oracle hired Schneider Electric executive Hilary Maxson as its new chief financial officer. Associated Digital and Blackstone announced they have secured funding to build 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 is up 6% over the same period.
Executives will discuss the results in a conference call beginning at 5 p.m. ET.
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