Oracle Corp (NYSE:ORCL) reported fourth-quarter financial results for fiscal 2026 after the closing bell on Wednesday. Here’s a look at the key details from the print.
- Oracle stock is under selling pressure. Why are ORCL shares declining?
Oracle Q4 Earnings Highlights
Oracle reported fourth-quarter revenue of approximately $19.18 billion, beating analyst estimates of approximately $19.10 billion, according to Benzinga Pro. Adjusted earnings grew 24% year-over-year to $2.11 per share, beating analyst estimates of $1.96 per share.
Total revenue was up 21% on a year-over-year basis as cloud revenue climbed 47%. Here's a breakdown of revenue by segment:
- Cloud: $9.9 billion, up 47%
- Cloud Infrastructure: $5.8 billion, up 93%
- Cloud Apps: $4.1 billion, up 10%
- Software: $6.8 billion, down 2%
- Services: $1.5 billion, up 13%
- Hardware: $900 million, up 9%
Remaining performance obligations totaled $638 billion at the end of the third quarter, up 363% year-over-year.
“The large increases in Oracle’s RPO and revenue are driven by the growing demand for cloud infrastructure for AI training and inferencing,” the company said.
Oracle ended the period with approximately $31.29 billion in cash and cash equivalents. The company noted that it expects to raise approximately $40 billion in fiscal 2027 through a combination of debt and equity financing, including its previously announced $20 billion at-the-market equity issuance.
Oracle's board declared a quarterly cash dividend of 50 cents per share, payable on July 24 to shareholders of record as of July 10.
Oracle guided for first-quarter revenue growth of 27% to 29%. Total cloud revenue is expected to grow between 57% and 63%. Adjusted earnings are expected to be between $1.72 and $1.76 per share in the first quarter, versus estimates of $1.68 per share.
Oracle affirmed its fiscal 2027 revenue outlook of $90 billion versus estimates of approximately $88.90 billion. The software giant also guided for fiscal 2027 adjusted earnings of $8.05 per share versus estimates of $8.01 per share. Oracle noted that it expects its new AI patient care management system to push the growth rate of the overall Oracle Health business to double-digits in fiscal 2027.
Oracle tends to provide additional color on its forward outlook on quarterly earnings calls. The company’s fourth-quarter conference call is scheduled for 5 p.m. ET.
ORCL Shares Slip After The Close
ORCL Price Action: Oracle shares were down 4.23% in after-hours, trading at $194.94 at the time of publication on Wednesday, according to Benzinga Pro.
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