On Wednesday, Oracle Corp (NYSE:ORCL) said that the fears of a broader SaaS slowdown have largely faded among its enterprise customers. The company’s shares have fallen about 9.75% over the past six months.
Oracle pushes back On SaaS slowdown fears
During Oracle’s fiscal 2026 fourth-quarter earnings call, CEO Mike Sicilia said concerns about the “SaaS apocalypse” had caused some customers to delay decisions a few quarters ago, but that sentiment has changed.
“People have quickly moved on to that,” Sicilia said, referring to fears that enterprise software spending would sharply weaken.
He added that Oracle’s customers increasingly view AI-enabled software as essential for modernization and business protection.
“Enterprise software, particularly when you have AI built into our SaaS solutions, is certainly a very good approach and is necessary to move forward for the modernization and protection of their businesses,” Sicilia said.
Huang Bullish On Software, Ackman Cautious
Earlier this month, Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang also dismissed concerns about a potential "Saaspocalypse," saying there has never been a better time to be in the software business.
Speaking at Computex in Taiwan, Huang said agentic AI is driving breakthroughs, particularly in how AI systems use tools.
Billionaire investor Bill Ackman has also weighed in on the software-sector sell-off, or "SaaSpocalypse," warning that companies built around per-seat pricing could face pressure as AI reshapes the industry.
"I worry more about a Salesforce," Ackman said, referring to Salesforce, Inc. (NYSE:CRM), arguing that some software firms risk losing customers after years of charging premium prices.
Oracle Posts Strong Q4 Beat, Issues Upbeat Outlook
Oracle reported fiscal fourth-quarter revenue of $19.18 billion, topping analyst estimates of $19.10 billion. Adjusted earnings rose 24% year over year to $2.11 per share, beating expectations of $1.96 per share.
Total revenue climbed 21%, fueled by a 47% increase in cloud revenue.
For the first quarter, Oracle forecast revenue growth of 27% to 29% and cloud revenue growth of 57% to 63%. The company expects adjusted earnings of $1.72 to $1.76 per share, above analysts’ estimate of $1.68 per share.
Price Action: Oracle shares closed Wednesday at $201.26 and fell another 10.12% in after-hours trading to $180.89, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, Oracle scores in the 70th percentile for Momentum, with the stock maintaining an upward trend over the short and medium term, despite weaker long-term momentum.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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