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Oracle Stock Falls Despite Earnings Beat as Company Plans $40 Billion Financing for FY2027

Oracle Stock Falls Despite Earnings Beat as Company Plans $40 Billion Financing for FY2027. Source: Travelarz, CC BY-SA 3.0 PL, via Wikimedia Commons

Oracle Corporation (NYSE: ORCL) delivered stronger-than-expected fiscal fourth-quarter 2026 results, surpassing Wall Street estimates on both earnings and revenue. Despite the positive performance and improved annual profit guidance, Oracle shares declined in after-hours trading after the company revealed plans to raise approximately $40 billion in financing during fiscal year 2027.

The Austin, Texas-based technology giant reported adjusted earnings per share (EPS) of $2.11 on revenue of $19.18 billion for the quarter. Analysts had projected earnings of $1.95 per share and revenue of $19.10 billion, making the results a notable beat on both the top and bottom lines.

However, investor sentiment weakened after Oracle disclosed its intention to secure roughly $40 billion through a combination of debt and equity financing in FY2027. The funding initiative includes the company’s previously announced $20 billion at-the-market equity issuance. Oracle also stated that it does not anticipate issuing additional debt during calendar year 2026.

The financing plans come as Oracle continues to expand its cloud infrastructure and artificial intelligence (AI) capabilities. In recent years, the company has invested heavily in building data centers designed to support growing AI workloads. While Oracle’s traditional businesses, including database software and enterprise applications, remain key revenue drivers, investors have closely monitored the company’s aggressive spending and rising debt levels tied to its AI ambitions.

Oracle previously targeted $50 billion in debt and equity financing for fiscal 2026 and ultimately raised approximately $48 billion. The latest financing announcement renewed concerns among investors regarding the long-term costs of the company’s expansion strategy.

Looking ahead, Oracle issued optimistic guidance for the first quarter of fiscal 2027. The company expects adjusted EPS between $1.72 and $1.76, exceeding analyst expectations of $1.69 per share. Oracle also forecast revenue growth of 27% to 29% during the quarter.

In addition, Oracle reaffirmed its fiscal 2027 revenue target of $90 billion and increased its full-year adjusted earnings per share outlook to $8.05, reflecting confidence in continued growth across its cloud and AI businesses.

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