Oracle Raises Fiscal 2027 EPS to $8.05, Shares Slide On $20B Capital Raise
ORCL•Oracle reported Q4 revenues of $19.18B, up 20.6% year-over-year, with cloud revenue climbing 47% driven by 93% IaaS growth. It raised fiscal 2027 EPS guidance to $8.05, projected up to 29% revenue growth and plans to raise $20B more, sending shares down 10% pre-market.
1. Strong Fourth-Quarter Performance
Oracle delivered Q4 revenues of $19.18B, up 20.6% year-over-year, propelled by cloud revenue growth of 47% with IaaS up 93% and SaaS up 10%. Net income rose to $4.22B from $3.43B, while adjusted operating income increased 22% to $8.6B.
2. Capital Raising Plan Spurs Sell-Off
The company plans to raise approximately $40B in fiscal 2027, including an additional $20B through equity and debt financing. Shares fell about 10% in pre-market trading as investors reacted to the expanded capital-raising program.
3. Bullish Fiscal 2027 Outlook
Oracle lifted its fiscal 2027 adjusted EPS guidance to $8.05, reflecting an 18% increase after adjusting for last year’s one-time items, and reaffirmed a full-year revenue target of $90B. For Q1, it forecast EPS of $1.72–$1.76 and total revenue growth of 27–29%, with cloud revenue projected to grow up to 64%.
4. Dividend Declaration
The board declared a quarterly cash dividend of $0.50 per share, payable on July 24 to shareholders of record on July 10, underscoring continued capital return despite increased funding plans.
