Oracle Tops Forecasts, Plans to Raise Another $20 Billion for AI Infrastructure

Oracle today (Wednesday) reported quarterly results that beat analysts’ expectations, alongside an increase in its annual earnings forecast. The company reported revenue of $19.2 billion in the fiscal fourth quarter, above market expectations of $19.1 billion, and adjusted earnings of $2.11 per share versus a forecast of $1.96. Revenue grew 21% from the same period a year earlier, while net income rose to $4.22 billion, compared with $3.43 billion a year earlier. Along with the report, Oracle left unchanged its revenue forecast for fiscal 2027, at $90 billion, but raised its adjusted earnings per share forecast to $8.05. The new forecast is slightly above analysts’ expectations of $8.01 per share. The company also said it expects to raise $40 billion through debt and equity offerings, including a $20 billion share offering it announced earlier. The move is intended to support the continued rapid expansion of its cloud and data center operations. Cloud operations remain Oracle’s main growth engine. Cloud services revenue rose 47% to $9.91 billion, while cloud infrastructure revenue jumped 93% to $5.8 billion. Another notable figure in the report was the company’s remaining performance obligations, which include unrecognized revenue, standing at $638 billion at the end of May, a 363% increase in a year. The figure was significantly above analysts’ estimates. According to analysts at Bank of America, more than half of the backlog is tied to contracts with OpenAI. For the current quarter, Oracle expects revenue growth of 27% to 29% and adjusted earnings of $1.72 to $1.76 per share, a forecast that is also above market expectations. Despite the strong results and encouraging outlook, the company’s stock is down about 4% in after-hours trading on Wall Street. Investors may be worried about the scale of the planned fundraising and the continued massive investments required to build the cloud infrastructure and data centers underpinning the artificial intelligence race.