Oracle shares climbed roughly 8% in extended trading on Wednesday after the company posted stronger-than-expected results and forecasted significant acceleration in cloud infrastructure growth.
The enterprise software giant reported financial results that beat Wall Street’s expectations for the fiscal fourth quarter, which ended May 31. According to LSEG consensus estimates, Oracle delivered:
-
Earnings per share: $1.70 adjusted vs. $1.64 expected
-
Revenue: $15.9 billion vs. $15.59 billion expected
Revenue rose 11% year over year, and net income increased to $3.43 billion, or $1.19 per share, up from $3.14 billion, or $1.11 per share, during the same period last year.
On a call with analysts, CEO Safra Catz said, “Cloud infrastructure revenue will increase by more than 70% in the 2026 fiscal year,” compared with 52% growth in the most recent quarter and 50% for all of fiscal 2025. Catz also projected “over $67 billion in fiscal 2026 revenue,” surpassing LSEG’s $65.18 billion consensus estimate.
Looking ahead, Oracle guided for adjusted earnings per share of $1.46 to $1.50 in the fiscal first quarter, with expected revenue growth between 12% and 14%. Analysts were looking for $1.48 in EPS and $14.96 billion in revenue, equating to about 12.4% growth.
Cloud services and license support revenue came in at $11.7 billion, ahead of the $11.59 billion consensus from analysts surveyed by StreetAccount. Cloud and on-premises license revenue reached $2.01 billion, topping StreetAccount’s $1.82 billion forecast.
Oracle highlighted several key developments during the quarter, including a strategic partnership with Cleveland Clinic and G42 — the UAE’s artificial intelligence holding company — to build an AI-driven healthcare delivery platform. The company also announced new cloud and consulting agreements with IBM, and SoftBank revealed it would acquire Oracle-backed chip startup Ampere for $6.5 billion.
Capital expenditures soared in fiscal 2025, surpassing $21 billion — up from under $7 billion the year before. Catz said spending would exceed $25 billion in the current fiscal year.
Oracle’s gains followed a 52% surge in cloud infrastructure revenue to $3 billion, marking it as the company’s fastest-growing segment — though the result came in just below Wall Street projections.
CEO Safra Catz said Oracle anticipates cloud infrastructure growth will accelerate from 50% in fiscal 2025 to over 70% in fiscal 2026. Analysts surveyed by Visible Alpha had forecasted a 62% increase.
“FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher,” Catz said.
She added, “Oracle is well on its way to being not only the world’s largest cloud application company—but also one of the world’s largest cloud infrastructure companies.”
As of Wednesday’s close, Oracle shares were up 6% year-to-date, compared to a 2% gain for the S&P 500.
Pump Radar
Stock Alerts
