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Oracle Fourth-Quarter Results Top Estimates Amid Cloud Infrastructure Demand

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Oracle Fourth-Quarter Results Top Estimates Amid Cloud Infrastructure Demand

Oracle's (ORCL) fiscal fourth-quarter results surpassed Wall Street's estimates, driven by rising demand for cloud infrastructure amid an artificial intelligence boom.

Revenue increased 21% year-on-year to $19.18 billion during the three months through May, above the FactSet-polled consensus of $19.1 billion. Adjusted earnings per share rose to $2.11 from $1.70 a year earlier, compared with the Street's $1.96 view.

Oracle's remaining performance obligations -- future commitments arising from contractual relationships -- soared 363% year-on-year to $638 billion. The metric rose $85 billion from the end of the third quarter.

"The large increases in Oracle's RPO and revenue are driven by the growing demand for cloud infrastructure for AI training and inferencing," the cloud computing company said late Wednesday.

Cloud sales advanced 47% to $9.91 billion, driven by a 93% jump in infrastructure to $5.79 billion. The software segment edged 2% lower to $6.82 billion.

Oppenheimer recently projected Oracle's cloud infrastructure revenue to grow 96% to $5.87 billion in the fourth quarter, compared with the consensus estimate that the brokerage put at 92%.

Oracle plans to to raise about $40 billion via debt and equity issuances in fiscal 2027, including its previously announced $20 billion stock sale. That follows $43 billion raised in debt and $5 billion in equity financing in the just-ended year.

"Oracle's capital investment program supports the pursuit of unprecedented opportunities in AI cloud infrastructure," the company said Wednesday.

It does not expect to issue additional debt in calendar year 2026.

Shares were down 6.3% in after-hours trading. The stock gained 3.3% so far this year through Wednesday close.

The company expects reported revenue to grow by 27% to 29% in the first quarter, with cloud sales seen rising 58% and 64%. Non-GAAP EPS is expected to grow between 17% and 20%, reaching $1.72 to $1.76. Markets expect adjusted EPS of $1.68 on consolidated revenue of $19.05 billion.

Oracle maintained its fiscal 2027 revenue outlook at $90 billion and raised non-GAAP EPS guidance to $8.05. Analysts expect $88.78 billion and $8.02, respectively.

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