Oracle reported Q4 revenue of $19.18 billion and cloud growth of 47%, but margin concerns triggered a sell-off in its stock.
Oracle’s stock declined after the company posted Q4 fiscal 2026 results, despite a 21% year-over-year revenue increase to $19.18 billion, beating the $19.1 billion analyst estimate. Cloud revenue surged 47% to $9.9 billion, with infrastructure revenue nearly doubling to $5.8 billion, while software revenue dipped 2% to $6.8 billion.
Adjusted earnings per share rose 20% to $2.03, but investors focused on the near-term margin pressure from heavy cloud infrastructure spending. The company’s backlog growth remains strong, though the lag between capital expenditures and revenue generation weighed on sentiment.
Shares fell modestly, reflecting concerns over profitability amid aggressive expansion, despite long-term cloud growth potential.