Oracle (ORCL, Financial) reported better-than-expected results for its fourth fiscal quarter, despite slightly underperforming cloud infrastructure expectations. The company anticipates over 70% growth in cloud infrastructure revenue for fiscal year 2026 and plans to increase capital expenditure to $25 billion. Initially, Oracle's stock fell by 3% post-market, but later surged by 8%.
Key financial highlights include a fourth-quarter revenue of $15.9 billion, an 11% year-over-year increase, surpassing analysts' expectations of $15.59 billion. Operating profit reached $7.04 billion, exceeding the expected $6.85 billion, with an operating margin of 44%. Adjusted EPS was $1.70, above the anticipated $1.64.
Oracle's cloud infrastructure revenue rose 52% year-over-year to $3 billion, slightly below the expected $3.07 billion. Overall cloud revenue, including IaaS and SaaS, grew 27% to $6.7 billion, making up 42% of total revenue. CEO Safra Catz predicts over 70% growth in cloud infrastructure revenue and over $67 billion in total revenue for fiscal year 2026.
Oracle's strategic focus on cloud services, including partnerships with OpenAI and Meta Platforms, has driven significant growth in unfulfilled performance obligations, which increased 41% to $138 billion, indicating strong future revenue visibility.
