Earnings Results
Oracle reported adjusted earnings of $2.11 per share on revenue of $19.18 billion for fiscal Q4 2026, surpassing analyst expectations of $1.95 per share and $19.10 billion revenue. Cloud services revenue reached $9.9 billion, up 46 % year‑on‑year in constant currency, while Oracle Cloud Infrastructure revenue rose 92 % to $5.8 billion. Total software revenue slipped 2 % in constant currency to $6.8 billion.
Capital Expenditure Guidance
The company forecast fiscal 2027 capital expenditures of up to $95 billion, well above the $67.7 billion consensus, and said it expects to recover up to $25 billion of that amount from customer repayments. CFO Hilary Maxson indicated that roughly $70 billion of the projected outlay represents Oracle’s own spending, with the balance expected to be repaid by customers, though no timeline was provided. She also warned that gross margins are likely to step down in the current fiscal year as the data‑center build‑out accelerates.
Financing Plans
Oracle announced it intends to raise approximately $40 billion in fiscal 2027 through a combination of debt and equity, including a previously announced $20 billion at‑the‑market equity issuance. The company stated it does not expect to issue additional debt in calendar year 2026. In fiscal 2026 the firm had aimed to raise $50 billion and ultimately secured $48 billion.
Guidance and Outlook
For Q1 2027 Oracle projects adjusted earnings of $1.72 to $1.76 per share on revenue growth of 27 % to 29 %, compared with analyst expectations of $1.69 per share. The firm reaffirmed its full‑year 2027 revenue target of $90 billion and raised its adjusted profit‑per‑share outlook to $8.05.
Market Reaction and Analyst Comments
Despite the earnings beat, the stock fell about 10.1 % in pre‑market trading following the capital‑spending and financing announcements. Stifel analysts noted that the FY27 profitability commentary suggests gross margins may decline more than previously expected, contributing to a roughly 12 % after‑hours drop. Wolfe Research called the results “an all‑around banger” citing accelerating revenue, cloud, RPO and IaaS growth, and said the data weakened the “SaaS‑pocalypse” thesis.