ORCL Stock Drops Amid Lower-Than-Expected Q1 Earnings, Unchanged Sales Outlook

• Oracle Q4 cloud revenue increased 47% to $9.9 billion, driven by 93% growth in Cloud Infrastructure, and 10% growth in Cloud Applications business. 
• But Q4 revenue from the legacy software business dropped 2% to $6.8 billion. 
• Oracle was awarded a nearly $400 million contract by the Trump administration. 

Oracle (ORCL) share price eased about 7% after-hours on Wednesday after the software and cloud infrastructure company’s first quarter and full-year guidance failed to impress, while the company announced an additional $20-billion fundraise for the ongoing financial year. 

Oracle’s Q4 adjusted earnings came up at $2.11 per share, above Wall Street’s consensus estimate of $1.96, according to data from Fiscal.ai, and up from $1.70 last year. Revenue for the quarter reached $19.2 billion, ahead of expectations of $19.1 billion, and up 21% on the year. 

Cloud revenues for the fourth quarter came in at $9.9 billion, up 47%, while the company expects first-quarter FY27 cloud revenue growth of 58%-64%. 

“The large increases in Oracle’s RPO and revenue are driven by the growing demand for cloud infrastructure for AI training and inferencing,” Oracle said in an earnings statement. 

“Other innovations in the areas of high-performance networking, advanced security and autonomous software have made Oracle the world’s fastest growing provider of cloud datacenters.”

To fund its AI prospects, Oracle expects to raise around $40 billion through a combination of debt and equity financing, which includes its previously announced $20 billion at-the-market equity issuance. Oracle does not expect to issue additional debt in the calendar year 2026. 

ORCL Q1 And FY27 Guidance 

Oracle expects Q1 total revenue to grow between 27% and 29%, which is in-line with the average revenue growth rate of 26.4% according to data from Fiscal.ai, while it expects revenue from its cloud business to grow between 58% and 64%. 

Oracle expects its adjusted earnings for Q1 to be between $1.72 and $1.76 per share, lower than the range of $1.51 and 1.84 per share as per Fiscal.ai data. 

For fiscal year 2027, ORCL maintained the prior guidance of $90 billion and raised earnings guidance to $8.05 per share, which met expectations. 

Most other cloud and data center operators have significantly raised their full-year revenue and sales guidance, given the surge in demand for AI tools and services. Investors might look down upon the unchanged revenue outlook as a lack of demand for Oracle’s services compared to competition. 

Oracle stock also declared a quarterly cash dividend of $0.50 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on July 10, 2026, with a payment date of July 24, 2026. 

ORCL Wins $400-Million Contract From Trump Administration 

In separate news, Oracle on Wednesday also won a $400 million contract from the Trump administration. The Office of Personnel Management (OPM) awarded a nearly $400 million contract to Oracle on Wednesday, as part of ongoing efforts to launch a governmentwide IT platform for agencies to manage their human resources capabilities, Federal News Network said. 

“This becomes the centerpiece for how we create effectively a unified set of applications that every federal employee can follow from cradle to grave,” OPM Director Scott Kupor said in an exclusive interview with Federal News Network. 

“The opportunities are endless — what this does is basically drive an enormous amount of self-service, and more importantly, the ability for us to actually be able to make the employee experience much more seamless.”

ORCL Stock: Retail View 

Retail sentiment on Stocktwits was ‘extremely bullish’ with ‘extremely high’ message volumes. Retail chatter has surged about 200% over the past week and 500% over the past month. 

One user highlighted the additional capital raise as a matter of concern 

ORCL stock has jumped 3.6% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<