Oracle (ORCL, Financials) shares jumped 8% in after-hours trading Wednesday after the company topped Wall Street's fiscal Q4 expectations and issued robust guidance for accelerated cloud growth.
For the quarter ended May 31, Oracle posted adjusted earnings of $1.70 per share, beating the $1.64 consensus. Revenue rose 11% year over year to $15.9 billion, above the expected $15.59 billion. Net income increased to $3.43 billion from $3.14 billion a year earlier.
Catz guided for 12%–14% top-line growth in Q1, with adjusted EPS between $1.46 and $1.50—both in line with LSEG forecasts.
Catz said Oracle's cloud infrastructure revenue will grow over 70% in fiscal 2026, up from 50% in fiscal 2025. She also forecast more than $67 billion in total revenue for FY26, above the $65.2 billion analyst consensus. Looking further ahead, she said Oracle could exceed its previous $104 billion projection for FY29.
Cloud services and license support revenue reached $11.7 billion in Q4, ahead of StreetAccount's $11.59 billion estimate. License revenue from both cloud and on-premises totaled $2.01 billion, also above expectations.
Oracle highlighted several strategic wins during the quarter, including a cloud and AI health-care partnership with Cleveland Clinic and UAE-based G42, new deals with IBM, and infrastructure migration by Chinese retailer Temu.
Capex surged past $21 billion in FY25 and is projected to exceed $25 billion in FY26. Larry Ellison said customer demand is so high that Oracle received a bulk order for all available cloud capacity.
“We never got an order like that before,” Ellison said. “The demand right now seems almost insatiable.”
