Oracle beats estimates, boosts planned capital raise by $20B

• Oracle maintained its fiscal 2027 revenue guidance of $90 billion while raising its profit forecast, though the company reported negative $23.7 billion in free cash flow for the fiscal year
• Cloud infrastructure revenue surged 93% to $5.8 billion, and remaining performance obligations reached $638 billion (up 363%), significantly exceeding the $595.67 billion analyst consensus
• The company plans to raise $40 billion total through debt and equity financing to support its data center buildout, double the previously announced amount

Oracle Q4 Earnings Summary

Financial Performance

Oracle exceeded Wall Street expectations in its fiscal Q4 (ended May 31), with revenue of $19.18 billion versus $19.10 billion expected, representing 21% year-over-year growth. Net income reached $4.22 billion ($1.45 per share). However, the company reported negative free cash flow of $23.7 billion for the full fiscal year.

Key Metrics

• Cloud revenue: $9.91 billion, up 47% (slightly below the $9.97 billion consensus)
• Cloud infrastructure revenue: $5.8 billion, surging 93%
• Software revenue: $6.82 billion, down 2%
• Remaining performance obligation: $638 billion, up 363% (significantly above $595.67 billion estimate)

Guidance and Capital Raise

Oracle maintained its fiscal 2027 revenue target of $90 billion while raising its adjusted EPS forecast to $6.61-$6.73 from $6.45-$6.59. The company announced plans to raise $40 billion total through debt and equity financing, including an additional $20 billion on top of previously announced plans, to fund AI infrastructure expansion.

Market Reaction

Despite beating estimates, Oracle shares fell 5% in after-hours trading due to dilution concerns from the capital raise announcement. Year-to-date 2026, the stock is up 3% versus the S&P 500's 6% gain.

Strategic Developments

During the quarter, Oracle hired Schneider Electric's Hilary Maxson as CFO and partnered with Blackstone on a $16 billion data center project in Michigan, underscoring its aggressive AI infrastructure buildout strategy.