Oracle reports adjusted Q4 EPS of $2.11, exceeding estimates, while announcing a $40bn debt and equity raise for FY2027.
Oracle posted stronger-than-expected Q4 profitability, with adjusted EPS of $2.11 beating estimates of $1.97 and operating margin at 45%, above the 43.5% forecast. The results were driven by higher-than-anticipated infrastructure revenue, reinforcing demand for AI-driven cloud services.
Cloud revenue reached $9.91bn, slightly below the $10.00bn estimate, while software license sales of $1.88bn fell short of the $1.93bn forecast. The company plans to raise approximately $40bn in FY2027 through debt and equity, a move likely to draw investor scrutiny over leverage and dilution risks.
Shares may face mixed reactions as the earnings beat contrasts with concerns over cash burn and financing plans. Bond markets could monitor the debt structure closely as Oracle funds data center expansion.