Oracle Q4 EPS Tops $2.11, Cloud Sales Rise 47%, Plans $20B Equity Raise
ORCL•Oracle’s Q4 adjusted EPS rose to $2.11 on $19.2 billion revenue, with cloud revenue up 47% to $9.9 billion and legacy software down 2% to $6.8 billion. Shares dipped 7% when company guided Q1 growth, announced a $20 billion equity raise (total AI funding $40 billion) and secured a $400 million U.S. HR platform deal.
1. Q4 Financial Performance
Oracle delivered adjusted EPS of $2.11 on $19.2 billion revenue, up 21% year-over-year. Cloud revenue climbed 47% to $9.9 billion while legacy software fell 2% to $6.8 billion.
2. Guidance and Capital Raise
The company maintained its $90 billion fiscal 2027 revenue target and guided Q1 revenue growth of 27%–29% with 58%–64% cloud expansion. To support AI infrastructure, Oracle will issue $20 billion in at-the-market equity—bringing total AI funding to $40 billion—and plans no additional debt in 2026.
3. U.S. Government HR Platform Contract
Oracle secured a $400 million contract to modernize the federal human resources platform, replacing disparate agency systems with a unified cloud-based solution as part of government technology modernization efforts.
4. Investor Reaction
Shares fell about 7% in after-hours trading following the release, as investors weighed the unchanged full-year revenue outlook and sizable fundraising plans against robust cloud growth and AI investment costs.
