Oracle shares fell sharply despite beating earnings estimates as investors worry about AI spending and debt levels.
Oracle (ORCL) shares plunged 8.53% on June 11, erasing gains after the company reported stronger-than-expected fiscal fourth-quarter results. Adjusted earnings reached $2.03 per share, above the $1.96 estimate, while revenue grew 21% year over year to $19.18 billion, slightly ahead of the $19.10 billion forecast.
The company raised its adjusted earnings per share outlook to $8.05 for fiscal 2027, exceeding Wall Street’s $8.01 expectation, and maintained its $90 billion revenue guidance. However, concerns over Oracle’s $638 billion remaining performance obligations (RPO)—up 363%—and its plans to raise debt for AI investments weighed on sentiment.
For the fiscal first quarter, Oracle forecast earnings of $1.72 to $1.76 per share and revenue growth of 27% to 29%, aligning with analyst estimates of $1.68 per share and $19.06 billion in revenue.