Oracle Shares Slip After Hours Despite Revenue Beat, Cloud Miss Weighs

Oracle Corporation (NYSE: ORCL) shares fell more than 5% in after-hours trading on Wednesday after the enterprise software giant delivered a mixed fiscal fourth-quarter report, beating analysts’ expectations on earnings and revenue but disappointing on a key cloud metric that investors had been watching closely.

Earnings Beat, Cloud Miss

For Q4 FY2026, Oracle posted non-GAAP earnings per share of $2.11, topping the Wall Street consensus of $1.97 by around 7.5%, according to data from Yahoo Finance. Total revenue came in at $19.18 billion, up 21% year-over-year and slightly ahead of the $19.09 billion analysts had anticipated.

However, cloud revenue — Oracle’s most closely tracked growth driver — fell short. Total cloud revenue of $9.91 billion missed the $9.99 billion consensus estimate. Within that, Cloud Applications (SaaS) revenue of $4.13 billion narrowly missed expectations of $4.17 billion, though Cloud Infrastructure (IaaS) revenue of $5.79 billion edged past the $5.72 billion forecast on the back of 93% year-over-year growth.

Capex Concerns Weigh on Sentiment

Adding to investor unease, Oracle signalled plans to spend as much as $90 billion on capital expenditures in fiscal 2027 — well ahead of Wall Street’s estimate of $69.24 billion — and announced intentions to raise approximately $40 billion through a combination of debt and equity financing, including a previously announced $20 billion at-the-market equity issuance.

Record Backlog and Raised Guidance

On a brighter note, Remaining Performance Obligations (RPO) surged to a record $638 billion, blowing past the $589.5 billion consensus, signalling robust long-term AI-driven demand. Oracle reaffirmed its FY2027 full-year revenue guidance of $90 billion and raised its non-GAAP EPS guidance to $8.05.