Oracle reported fiscal fourth-quarter earnings that beat analyst expectations, but shares fell 6.1% in extended trading after the company announced plans to raise approximately $40 billion in fiscal 2027 through debt and equity financing.
The Austin-based cloud and software giant reported adjusted earnings per share of $2.11 on revenue of $19.18 billion for its fiscal Q4 2026, according to Investing.com. Wall Street had expected earnings of $1.95 per share on revenue of $19.10 billion, marking a beat on both the top and bottom lines.
Despite the strong quarterly results, investor concerns about Oracle’s massive capital spending plans weighed on the stock. The company said it expects to raise $40 billion in fiscal 2027 including a previously announced $20 billion at-the-market equity issuance, according to the company’s statement. In fiscal 2026, Oracle had intended to raise $50 billion in debt and equity financing but ultimately hit $48 billion.
Oracle’s aggressive capital-raising strategy reflects its pivot toward cloud computing infrastructure to support artificial intelligence workloads. The company has committed to a major data center buildout to serve customers like OpenAI, which signed a historic $300 billion computing agreement with Oracle. However, investors have grown increasingly concerned about the sustainability of such massive spending and the company’s ability to generate returns on these investments.
On the positive side, Oracle raised its adjusted profit per share guidance for fiscal 2027 to $8.05 and reaffirmed its full-year revenue target of $90 billion. For the first quarter of fiscal 2027, the company provided guidance of $1.72 to $1.76 per share on revenue growth of 27% to 29%, according to Investing.com. Analysts had been looking for Q1 profit of $1.69 per share.
The stock decline despite an earnings beat reflects a pattern seen earlier in 2026. When Oracle announced a similar capital raise plan in February, shares initially moved higher but later faced selling pressure as investors absorbed the implications of the massive debt and equity issuance. The company’s capital expenditure guidance has been a source of volatility, with a December 2025 announcement of a $15 billion increase to its capex plans triggering significant stock weakness.
Oracle’s remaining performance obligations—a key metric of future revenue—reached $553 billion as of the latest quarter, up 325% year-over-year, underscoring the scale of customer demand for its cloud infrastructure services. Cloud revenue growth has been a bright spot, with the company’s cloud business expanding at a robust pace to support AI demand.
Sources
- Investing.com — Q4 earnings beat details, stock decline, and fiscal 2027 guidance
- CNBC — Oracle fiscal 2027 capital raise announcement and $40 billion financing plans
- MSN/Reuters — Stock performance and capital raise details
