Oracle Shares Soar 8% After Surpassing Earnings and Revenue Expectations

Oracle's Stock Surges Following Strong Quarterly Performance

Oracle's shares climbed sharply by 8% in extended trading after the tech giant reported quarterly results that outpaced Wall Street forecasts. The company also projected robust growth in its cloud infrastructure segment, signaling a promising outlook.

Impressive Q4 Earnings and Revenue

For the fiscal fourth quarter ending May 31, Oracle delivered adjusted earnings per share of $1.70, surpassing the estimated $1.64. Revenue came in at $15.9 billion, exceeding the consensus of $15.59 billion, marking an 11% increase year over year.

Net income grew 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.

Cloud Growth Accelerates

Oracle's CEO highlighted a significant acceleration in cloud infrastructure revenue, which is expected to grow by more than 70% in fiscal 2026. This marks a sharp rise from the 52% growth recorded in the latest quarter. The company anticipates total fiscal 2026 revenue to top $67 billion, higher than analyst expectations pegged at around $65.18 billion.

Guidance and Analyst Expectations

Looking ahead, Oracle forecast adjusted earnings per share in the range of $1.46 to $1.50 for the fiscal first quarter, alongside revenue growth between 12% and 14%. These figures closely align with analysts’ estimates which predicted $1.48 per share and approximately $14.96 billion in revenue (about 12.4% growth).

Strong Revenue from Cloud and Licensing

In the recent quarter, Oracle reported cloud services and license support revenue of $11.7 billion, surpassing analyst estimates of $11.59 billion. Meanwhile, revenue from cloud and on-premises licenses totaled $2.01 billion, well above the forecasted $1.82 billion.

Strategic Partnerships and Investments

During the quarter, Oracle formed a strategic alliance with Cleveland Clinic and UAE’s AI firm G42 to develop an innovative AI platform for healthcare delivery. Additional cloud collaborations were announced, along with a notable acquisition by SoftBank of the Oracle-backed chip design startup Ampere for $6.5 billion.

Capital Expenditure Trends

Capital expenditures for fiscal 2025 surged past $21 billion, a substantial increase from less than $7 billion in fiscal 2024. CEO Safra Catz indicated that spending in fiscal 2026 is expected to exceed $25 billion, underscoring Oracle’s commitment to expansion and infrastructure investment.