How Did Oracle Fare In Q4 Fiscal 2026?
Oracle Corp.’s results were ahead of estimates on both the revenue and the EPS front. The company’s revenue of $19.18 billion was higher than the $19.1 billion estimate, while its Earnings Per Share (EPS) of $2.03 was higher than the $1.96 estimate on an adjusted basis.
For the quarter gone by, Oracle’s revenue grew by 21% from last year, while net profit rose to $4.22 billion.
During the full fiscal, Oracle reported negative free cash flow of $23.7 billion with depreciation nearly doubling to $7.62 billion. Capex went up by 162% from last year.
What Has Oracle Guided For Fiscal 2027?
For the new fiscal, Oracle Corp. has maintained its previous revenue guidance of $90 billion, while raising its EPS projections to $8.05, higher than analyst estimates of $8.01. Analysts were also projecting the revenue guidance to be trimmed down to $88.9 billion.
Why Did Oracle Shares Fall Afterhours?
In its earnings statement, Oracle said that it now foresees raising $40 billion through debt and equity financing this year, double of the $20 billion it had earlier projected.
This is not the first fund raise that Oracle had announced. It has already raised $43 billion in debt and another $5 billion in equity financing through fiscal 2026, a move that had already spooked investors, resulting in a sharp sell-off for the stock.
Another reason behind the fall was Oracle’s core business. Revenue from cloud offerings grew by 47% from last year to $9.91 billion, a figure lower than the consensus estimates of $9.97 billion. Cloud infra revenue grew 93% to $5.8 billion, way below market leader Amazon’s tally of $37.59 billion in the most recent quarter.
For fiscal 2027, Oracle’s cash outlay will be around $70 billion and that is excluding the $20 billion to $25 billion in prepayments from customers.
Who Is Bullish On Oracle?
Bank of America’s analysts, who recommend buying the stock even after results, said that 50% of Oracle’s remaining performance obligations, which is revenue yet to be recognized, comes from OpenAI. For the quarter, Oracle’s RPO rose by 363% to $638 billion, well above the analyst estimates of $595.7 billion.
Shares of Oracle Corp are down 10.2% in extended trading to $201.26. The stock will most likely turn negative for 2026 if these losses hold. The stock is down nearly 50% from its 52-week high of $345.72.
