Oracle Q4 Revenue Jumps 21% as Cloud Soars, Plans $40B AI Funding
ORCL•Oracle's Q4 revenue rose 21% to $19.18B with adjusted EPS of $2.03, driven by a 93% surge in cloud infrastructure revenue to $5.8B and cloud revenue of $9.9B. The company plans to secure $40B in funding for AI data center buildout atop $55.7B capex, spurring a 10% after-hours slide.
1. Q4 Financial Performance
Oracle reported Q4 revenue of $19.18 billion, up 21% year-over-year, with adjusted EPS of $2.03 beating consensus by 3.6%. Cloud infrastructure revenue surged 93% to $5.8 billion, while total cloud revenue climbed 47% to $9.9 billion, offsetting a 2% decline in on-premises software sales.
2. Fiscal 2026 Cash Flow and Capex
For full fiscal 2026, revenue reached $67.4 billion, a 17% increase, and operating cash flow rose 54% to $32 billion. Capital expenditures jumped to $55.7 billion from $21.2 billion, driving free cash flow to a negative $23.7 billion due to heavy investment in infrastructure.
3. AI Data Center Funding Plan
Oracle announced plans to raise approximately $40 billion in new debt and equity for its AI data center buildout, building on $43 billion in debt and $5 billion in equity already issued. CFO guidance targets $70 billion in net capital spending for fiscal 2027, with $638 billion in remaining performance obligations, including $75 billion in prepaid or customer-supplied GPU commitments.
