Oracle Shares Drop 8.4% After Q4 Beat and $70B AI Capex Plan
ORCL•Oracle reported Q4 revenue of $19.18B and EPS of $2.11, up 24% YoY, alongside record RPO of $638B and $67B in AI infrastructure contracts. Shares slid 8.42% after unveiling a ~$70B fiscal 2027 AI-focused capex plan, even as Cognizant selected Oracle Fusion Cloud Recruiting for AI-driven hiring in 60+ countries.
1. Strong Q4 Performance
Oracle delivered Q4 revenue of $19.18B, beating estimates, with EPS rising 24% YoY to $2.11. The company also reported record remaining performance obligations (RPO) of $638B and secured $67B in new AI infrastructure contracts, underscoring robust demand for its cloud offerings.
2. Aggressive AI Capex Spurs Stock Decline
Management announced plans to invest approximately $70B in capital expenditures for fiscal 2027 to expand AI infrastructure and data centers. The aggressive spending outlook led to an 8.42% drop in shares as investors weighed potential margin pressures.
3. Cognizant Adopts Oracle AI Recruiting
Global services firm Cognizant chose Oracle Fusion Cloud Recruiting to modernize talent acquisition across 60+ countries. Embedded AI capabilities and Oracle AI Agent Studio will streamline hiring workflows and support Cognizant’s plan to grow its 350,000+ workforce.
