Oracle shares – Oracle reported 21% year-over-year revenue growth in fiscal fourth quarter results, but its shares fell more than 10% in premarket after the company missed Wall Street’s expectations for Cloud revenue. The outlook is also shaped by Oracle’s plan to raise about
Oracle’s quarterly results looked strong on paper—until investors focused on the parts that didn’t land.
On Wednesday evening, the company reported fiscal fourth-quarter figures. By the next trading morning, Oracle’s shares (NYSE: ORCL) were down more than 10% in premarket. At publication. they were still about 9% lower. turning what should have been a clean earnings story into a stock-market question about how fast the AI push is translating into the exact growth Wall Street wants to see.
Oracle said its revenue rose 21% year-over-year for its fiscal fourth quarter. The company reported $19.18 billion in revenue, narrowly beating Wall Street’s $19.10 billion estimate. Adjusted earnings per share came in at $2.03, up from a predicted $1.96 per share.
The win didn’t cover the miss. Oracle also reported Cloud revenue of $9.91 billion, which it described as making up 52% of overall quarterly revenue and growing 47% year-over-year. Analysts had expected $9.97 billion.
That gap matters because Oracle’s Cloud performance sits at the center of how markets judge whether the AI boom is driving sustainable momentum—or simply pulling forward spending.
The funding plan adds a second layer of pressure. Oracle announced plans to raise about $40 billion in debt and equity financing in fiscal 2027. About $20 billion of that is tied to a previously disclosed at-the-market equity issuance.
The new plan follows a major year of financing: Oracle raised $48 billion in fiscal 2026 between the two avenues, and the company said it doesn’t plan to further increase that amount this year.
Oracle CFO Hilary Maxson framed the rationale in terms of customer pull rather than corporate urgency. In a post-earnings call. she said: “Importantly. these investments are being driven by committed customer demand. reflected in our record RPO [remaining performance obligations]. giving us confidence in our long-term outlook as well as strong returns on the capital we’re deploying.”.
She added: “This demand is allowing us to garner customer prepayments and bring your own hardware at similar or better margins than the rest of our contracts.”
Oracle’s remaining performance obligations, or RPO, rose sharply—up 363% year-over-year to $638 billion. The company pointed to large-scale AI contracts as the key driver. crediting the growth to arrangements where customers prepaid for the purchase of the GPUs. or bought and supplied the GPUs to Oracle.
Oracle also said the prepaid and customer-supplied hardware portions of its large AI contracts now total $75 billion. In its earnings report, it added: “This substantially reduces the amount of capital Oracle must raise to build out our AI datacenters.”
Even with that explanation, some investors remain uneasy about the broader shape of the AI spending cycle. The concern is not limited to one quarter—it’s about whether the market is paying for growth that hasn’t fully shown up in every metric yet.
Some investors see risk in overfunding AI, with analysts recently warning that the AI bubble could burst. The comparisons being drawn aren’t subtle. The current backdrop is described as reminiscent of the dot-com bubble and the market collapse that followed in the early 2000s.
At the end of May, the S&P 500 closed at a record high, but that record was driven by only 20 stocks hitting all-time highs—13 of them AI-related. Michael Hartnett at Bank of America pointed out that the same number—20—also hit an all-time high during the dot-com bubble at its highest in March 2000.
Taken together. Oracle’s results and its funding plans are setting up a familiar clash: strong top-line momentum and massive remaining obligations on one hand. and a cloud revenue miss plus the need for large-scale financing on the other. For investors trying to separate durable demand from speculative excess. this quarter has become less about whether Oracle is in the AI race—and more about how quickly those contracts translate into the numbers the market is demanding right now.
Oracle ORCL earnings cloud revenue AI datacenters debt and equity financing fiscal 2027 RPO remaining performance obligations Hilary Maxson at-the-market equity issuance AI bubble
Market is savage for no reason lol.
So they missed cloud by like $0.06B and the stock drops 10%? That seems kinda insane. But I guess Wall Street wants perfection or else.
Wait didn’t they beat earnings? Like revenue 21% up and EPS beat but everyone still mad. I swear these AI stories are just everyone gambling on numbers, then acting shocked when it’s not exactly what they wanted.
Raising $40B?? That sounds like they’re running out of money, not “investing.” Also if Cloud is 52% of revenue then a miss is basically the whole company, right? Idk I don’t even follow Oracle that much but this feels like the AI hype is slowing down and they’re trying to paper it over with funding.