NEW YORK — Oracle Corp. reported record quarterly earnings and revenue on Wednesday but its shares fell sharply after the company outlined plans to raise tens of billions of dollars in additional capital to fund its artificial intelligence infrastructure buildout.
The cloud computing and database software giant beat Wall Street expectations for the fiscal fourth quarter ended May 31, 2026. Oracle said it plans to raise about $40 billion in fiscal 2027 through a combination of debt and equity financing, including a previously announced $20 billion at-the-market equity issuance.
Total revenue rose 21% to a record $19.2 billion in the quarter, while cloud revenue increased 47% to $9.9 billion. Cloud infrastructure revenue, a key focus of the company’s AI push, jumped 93%. For the full fiscal year 2026, revenue reached $67.4 billion.
Remaining performance obligations, a measure of future revenue, grew $85 billion in the quarter to a record $638 billion. The company also raised its non-GAAP earnings per share guidance for fiscal 2027.
Shares of Oracle fell more than 8% in after-hours trading following the announcement, according to market data. Investors appeared concerned about the scale of planned capital expenditures and the dilutive effects of equity raises, even as the company delivered strong results.
Oracle has been aggressively investing in data centers to meet demand for its cloud infrastructure services powered by AI technologies. In fiscal 2026, the company raised $43 billion in debt financing and $5 billion in equity financing. It does not expect to issue additional debt in calendar year 2026.
"The substantial increase in remaining performance obligations reflects strong customer demand for our cloud infrastructure and AI services," Oracle Chairman and Chief Technology Officer Larry Ellison said in a statement accompanying the results.
The capital raise announcement comes as Oracle continues to expand its AI-related offerings. The company has partnered with major technology firms to provide infrastructure for advanced computing needs. Details on the exact timing and structure of the new financing beyond the $20 billion equity program remain unclear.
Oracle maintained its full-year fiscal 2027 revenue guidance of $90 billion while raising its adjusted earnings per share outlook. The company declared a quarterly dividend of $0.50 per share, payable on July 24.
As of Thursday, Oracle executives were scheduled to discuss the results in more detail on an earnings call. The company said its capital investment program supports opportunities in AI cloud infrastructure.
