$ORCL

Earnings Snapshot: Oracle Q4 beat as cloud revenue jumps 47%, FY27 revenue seen at $90B
Oracle Non-GAAP EPS of $2.11 beats by $0.15, revenue of $19.2B beats by $110M
Oracle press release (ORCL): Q4 Non-GAAP EPS of $2.11 beats by $0.15.
Revenue of $19.2B (+20.8% Y/Y) beats by $110M.
Record Remaining Performance Obligations grew $85 billion in Q4 from $553 billion to $638 billion
Guidance for Q1 FY 2027
Total revenues are expected to grow from 27% to 29% in both constant currency and USD.
Total Cloud revenue is expected to grow between 57% and 63% in constant currency and is expected to grow between 58% and 64% in USD.
Non-GAAP earnings per share is expected to grow between 16% and 19% and be between $1.71 and $1.75 in constant currency and grow between 17% and 20% and be between $1.72 and $1.76 in USD.
Guidance for Full FY 2027
For fiscal year 2027, we confirm our prior revenue guidance of $90 billion total revenue and raise our non-GAAP EPS guidance to $8.05, which is a growth of 18% after adjusting for the one-time events of selling our Ampere chip business and Bloom Energy warrants in fiscal year 2026.
Q1 2027 revenue consensus of $19.01B, non-GAAP EPS consensus of $1.69
FY27 revenue consensus of $88.54B, non-GAAP EPS consensus of $8.05
Oracle slips even as Q4 results, guidance top estimates
Oracle (ORCL) shares fell 1.5% in extended trading on Wednesday even after the IT giant reported fiscal fourth-quarter results and guidance that topped Wall Street's forecast.
For the period ending May 31, Oracle said it earned an adjusted $2.11 per share as revenue rose 21% year-over-year to $19.18B. Analysts had expected adjusted earnings of $1.97 per share on $19.09B in revenue.
Cloud revenue (which includes infrastructure and applications) came in at $9.9B, up 47% year-over-year. Infrastructure revenue soared 93% (92% in constant currency) year-over-year to $4.9B, while application revenue rose 10% year-over-year to $4.1B.
Software revenue fell 2.1% year-over-year to come in at $6.82B, below the $6.88B estimate. Software support revenue slipped 0.4% to $4.494B, while software license revenue came in at $1.88B, down 6.3% year-over-year. Hardware revenue rose 8.7% year-over-year to come in at $924M, above the estimate of $836.2M, while service revenue rose 13% to come in at $1.52B.
Total remaining performance obligations grew $85B during the period to $638B. Most of it was “large scale” AI contracts where the customer prepaid Oracle for the purchase of GPUs or the customer bought and supplied GPUs to Oracle. The prepaid and customer supplied hardware portions of Oracle's large AI contracts total $75B, which the company said “substantially reduces the amount of capital Oracle must raise to build out our AI datacenters.”
For fiscal 2027, Oracle said it expects to raise approximately $40B in debt and equity financing, including its previously announced $20B at-the-market equity issuance. Oracle does not expect to issue additional debt in calendar 2026, the company added.
Looking to the first-quarter of fiscal 2027, Oracle said it expects revenue to grow between 27% and 29% in constant currency and U.S. dollars, translating to a range of $18.956B to $19.255B. Analysts were expecting $19.05B in revenue for the coming quarter.
Adjusted earnings are forecast to be between $1.71 and $1.75 per share, above the $1.68 per share estimate.
Cloud revenue is expected to grow between 57% and 63% in constant currency and is expected to grow between 58% and 64% in U.S. dollars.
Oracle kept its fiscal 2027 sales forecast steady at $90B, though that topped expectations of $88.78B in sales. Oracle upped its adjusted earnings outlook and now expects to earn $8.05 per share, above the $8.02 per share estimate.
The company will host a conference call at 5 p.m. EST to discuss the results.
Oracle wins U.S. government contract for cloud-based HR platform rollout
Oracle on Wednesday won a contract to provide a cloud-based HR platform for U.S. government agencies, according to a Trump administration statement, Reuters reported.
The system will replace multiple agency-specific HR systems. OPM Director Scott Kupor said it aims to centralize federal HR operations; however, Oracle declined to comment.