Oracle reported stronger-than-expected fourth-quarter earnings after the bell on Wednesday, beating analysts’ estimates on both profit and revenue, even as its cloud revenue came in slightly below Wall Street’s forecast. The company posted adjusted earnings per share of $2.11 on revenue of $19.18 billion, compared with consensus estimates of $1.97 per share and $19.09 billion in revenue. A year earlier, Oracle reported earnings per share of $1.70 on revenue of $15.9 billion. The results showed continued growth in the company’s core business, but they also highlighted investor sensitivity to Oracle’s cloud performance as competition intensifies across the artificial intelligence infrastructure market.
Oracle’s cloud segment, which includes Cloud Applications and Cloud Infrastructure, generated $9.91 billion in revenue, missing the expected $9.99 billion. Cloud Applications revenue came in at $4.13 billion, below analysts’ estimates of $4.17 billion, while Cloud Infrastructure revenue reached $5.79 billion, slightly ahead of the projected $5.72 billion. Despite the cloud revenue miss, Oracle reaffirmed its fiscal 2027 revenue target of $90 billion, signaling confidence in its longer-term growth outlook.
A key focus for investors was Oracle’s spending plans. The company said it expects to spend as much as $90 billion on capital expenditures in 2027, far above the $69.24 billion that Wall Street had anticipated. Oracle also announced plans to raise roughly $40 billion to help fund its data center expansion through a mix of debt and equity sales. The aggressive investment strategy underscores the scale of Oracle’s push to expand its cloud and AI infrastructure footprint.
Another closely watched metric, remaining performance obligations, or RPOs, climbed to $638 billion, well above expectations of $589.5 billion. RPOs represent contracted future revenue that has not yet been recognized, and the figure is viewed as an indicator of demand for Oracle’s cloud services. The strong RPO reading suggests healthy customer demand and reinforces Oracle’s role as a major supplier in the rapidly expanding AI infrastructure market.
Oracle’s latest results also come at a time of heightened attention on one of its most important customers, OpenAI, which recently disclosed confidential IPO paperwork. OpenAI signed a $300 billion, five-year deal with Oracle in 2025, making the relationship a central part of Oracle’s AI growth narrative.
Oracle shares had previously fallen after the company’s December second-quarter earnings report, when investors worried about its outlook and spending plans. Since then, the stock has recovered following a stronger March quarter and the company’s raised 2027 revenue forecast. Still, Oracle’s performance has trailed some major tech peers this year. The stock was up 5.6% year to date as of Tuesday’s close and had gained more than 16% over the past 12 months. That compared with roughly 13% gains for Amazon, a decline of more than 14% for Microsoft, and a sharp rise of nearly 104% for Google, boosted by progress in Gemini models and growth at Google Cloud.
