GoKawiilOracle CEO Clay Magouyrk speaks at a Q&A session after a tour of the OpenAI data center in Abilene, Texas, on Sept. 23, 2025.
Oracle reported better-than-expected earnings and revenue for the fiscal fourth quarter on Wednesday while also raising its profit forecast for the year. The stock dropped 7% in extended trading as the company plans to raise more money to finance its AI buildout.
Here's how the company did in comparison with LSEG consensus:
Earnings per share: $2.11 adjusted vs. $1.96 expected
$2.11 adjusted vs. $1.96 expected Revenue: $19.18 billion vs. $19.10 billion expected
Revenue increased 21% year over year in the quarter, which ended on May 31, according to a statement. Net income rose to $4.22 billion, or $1.45 per share, from $3.43 billion, or $1.19 per share, a year ago. Adjusted earnings exclude impact of stock-based compensation.
The company maintained its previous revenue guidance of $90 billion for the 2027 fiscal year, while lifting its forecast of adjusted earnings per share to $8.05. Analysts were projecting $8.01 per share and $88.90 billion in revenue.
Oracle said it foresees raising $40 billion through debt and equity financing, including a $20 billion share sale it announced earlier. That's after raising $43 billion in debt and $5 billion in equity in fiscal 2026, a move that concerned investors due to uncertainty about whether demand for artificial intelligence can justify that much new capital.
For the fiscal year, Oracle reported $23.7 billion in negative free cash flow, with depreciation nearly doubling to $7.62 billion. Capital expenditures, at $55.66 billion, which were up 162%.
The company called for $1.72 to $1.76 in adjusted earnings per share for the fiscal first quarter, with 27% to 29% revenue growth. Analysts polled by LSEG had been expecting $1.68 in adjusted earnings per share, along with $19.06 billion in revenue, implying about 28% growth.
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