Oracle Corporation

Q4 revenue was $19.2 billion, up 21% in U.S. dollars. Cloud infrastructure revenue grew 93%, and cloud apps revenue grew 10%. Non-GAAP operating income was $8.6 billion, up 22% in U.S. dollars, and non-GAAP EPS was $2.11, up 24% in U.S. dollars; excluding a one-time net gain on investment, EPS was up 20%. Full-year revenue surpassed $67 billion for the first time, non-GAAP operating income was $29 billion, up 16%, and non-GAAP EPS was $7.63, or $6.83 excluding one-time gains. Full-year gross margin stepped down around 5 points as expected, operating cash flow was $32 billion, up 54%, net cash outlay for capex was $48 billion, and RPO finished at $638 billion, up 363%. For fiscal 2027, Oracle expects revenue growth of +34% in constant currency, non-GAAP EPS of $8.05, and for Q1 fiscal 2027 expects total revenue growth of 27% to 29% in U.S. dollars, cloud revenue growth of 58% to 64%, and non-GAAP EPS of $1.72 to $1.76.

The CEOs framed Oracle as being at the center of a major AI-driven shift because it can provide infrastructure, data, applications, AI tooling, and industry expertise together. Mike Sicilia emphasized that customers have moved from AI experimentation to implementation and that Oracle’s full-stack approach is helping it win across applications and databases, including new AI agent features and outcome-based pricing models. Clayton Magouyrk was highly confident on OCI, arguing that AI infrastructure demand is enormous, Oracle’s infrastructure is differentiated, and the company is building and delivering capacity at very large scale. The tone was upbeat and aggressive, with repeated emphasis on Oracle’s ability to execute and capture long-term demand.

Hilary Barbara Maxson highlighted a record quarter and said the company’s results were driven by strength in both cloud infrastructure and cloud apps. She noted that gross margin declined because of data center ramp costs and the acceleration of infrastructure revenue, but that operating cost reductions helped offset that pressure. She also said Oracle expects fiscal 2027 net cash outlay for capex of around $70 billion, plus $20 billion to $25 billion of prepayment and timing impacts, and plans to raise around $40 billion in debt and equity, including the already announced $20 billion at-the-market equity issuance. She reaffirmed the long-term outlook, including +31% revenue CAGR and +28% EPS CAGR through fiscal 2030, and said the new investment phase should support strong returns and improved infrastructure margins as projects reach full revenue contribution.

Analysts focused heavily on capex intensity, component cost inflation, and whether Oracle’s long-term targets still hold. On capex and memory/SSD cost pressure, Clayton said the latest increase was largely timing, and that Oracle uses fixed-price contracts when costs are known and pass-through mechanisms when they are not, so margins should not be left exposed. On long-term targets, Hilary said the company is reconfirming the CAGR outlook and pointed to the record RPO as evidence supporting it. Other questions centered on competition in AI data centers, bring-your-own-hardware and prepaid contract mix, and the newer outcome-based/token pricing models; management said demand still exceeds supply, renewals remain strong, and the new pricing structures are intended to align spending with measurable customer value while preserving or improving economics.