Oracle Q4 EPS Up 24% but Shares Drop 8% on $70B AI Capex Plan
Oracle posted Q4 revenue of $19.18B with EPS up 24% to $2.11, driven by cloud services and license support growth. Shares dropped over 8% after the company announced plans to raise $20B in cash and spend $70B in fiscal 2027 capex for AI data center expansion.
1. Q4 Financial Results
Oracle reported Q4 revenue of $19.18B and EPS rose 24% to $2.11, driven by strength in cloud services and license support. The company ended the quarter with record remaining performance obligations of $638B, including $67B in new AI infrastructure contracts.
2. AI Infrastructure Spending Plans
Oracle outlined plans to raise $20B in cash and invest approximately $70B in fiscal 2027 capital expenditures to expand AI data centers. The spending covers new server deployments and chip purchases aimed at meeting rising enterprise demand for AI workloads.
3. Investor Reaction and Outlook
Shares fell 8.42% as investors assessed the margin impact of elevated capex and cash raising. Analysts are revisiting margin forecasts for FY27 and monitoring the pace of contract utilization in Oracle's AI facilities.
