Oracle CEO Clay Magouyrk appears on a media tour of the Stargate AI data center in Abilene, Texas, on September 23, 2025.
Kyle Grillot | Bloomberg | Getty Images
oracle Shares fell 8% after the software maker told investors to expect an additional $20 billion in capital increases, while reporting negative free cash flow for the year.
Thursday’s decline puts the stock’s decline since the start of the year, down about 6% and lagging the Nasdaq, which has risen about 11%.
For its fiscal fourth quarter, Oracle reported significant improvement in revenue and bottom line. Revenue rose 21% to $19.18 billion, beating the average analyst estimate of $19.1 billion, LSEG said. Adjusted earnings per share were $2.03, beating the average estimate of $1.96.
But Oracle’s artificial intelligence enhancements continue to weigh on the stock, as investors question whether the company’s big spending will translate into profit growth after free cash flow was negative $23.7 billion last fiscal year.
Oracle said it plans to raise $40 billion through debt and equity financing, including a previously announced $20 billion stock sale. That’s after raising $43 billion in debt and $5 billion in equity in fiscal 2026.
Capital spending increased 162% to $55.7 billion. New Chief Financial Officer Hilary Maxon said net capital expenditures in 2027 will be about $70 billion, excluding $20 billion to $25 billion in advance payments from customers.
The company maintained its previous revenue guidance of $90 billion for fiscal 2027, while raising its adjusted earnings per share forecast to $8.05. Analysts had expected earnings of $8.01 per share and revenue of $88.9 billion.
“While we believe there will be continued debate around ORCL, we remain positive about ORCL’s AI-driven consumer growth potential,” Piper Sandler analysts said in a note late Wednesday. They recommend buying stocks.
Oracle expected first-quarter fiscal year adjusted earnings per share of $1.72 to $1.76 and revenue growth of 27% to 29%. Analysts surveyed by LSEG expected adjusted earnings per share of $1.68 and revenue of $19.06 billion, suggesting growth of about 28%.
Cloud infrastructure revenue increased 93% to $5.8 billion. The company’s remaining performance obligations, including unrecognized revenue, rose 363% to $638 billion as of May 31. Analyst estimates compiled by Street Account were for $595.67 billion.
Analysts at Bank of America, which recommends buying Oracle stock, said more than 50% of the remaining performance obligations are due to OpenAI. The company is a partner in the Stargate project, an effort to develop AI infrastructure in the United States.
Oracle aims to bring nearly 1 gigawatt worth of computing power online this quarter, roughly equivalent to fiscal 2026 total, CEO Clay Magouik said on a conference call with analysts.
Spotlight: Oracle’s mixed quarter
