Oracle disclosed plans for an additional $20 billion capital raise, bringing its total financing plan to $40 billion and the company reported negative free cash flow for its latest fiscal year, according to CNBC.
For the fiscal fourth quarter, Oracle reported revenue of $19.18 billion, up 21% from a year earlier and ahead of analysts’ expectations of $19.1 billion. Adjusted earnings per share came in at $2.03, surpassing the consensus estimate of $1.96.
Despite the earnings beat, investors focused on the company’s heavy spending on artificial intelligence infrastructure. Oracle reported negative free cash flow of $23.7 billion for fiscal 2026 and said it plans to raise $40 billion through debt and equity financing, including a previously announced $20 billion share offering. During fiscal 2026, the company raised $43 billion in debt and $5 billion in equity.
Capital expenditures surged 162% to $55.7 billion. New Chief Financial Officer Hilary Maxson said net cash spending on capital expenditures during fiscal 2027 is expected to reach about $70 billion, excluding customer prepayments of between $20 billion and $25 billion.
Oracle maintained its revenue outlook of $90 billion for fiscal 2027 and increased its adjusted earnings per share forecast to $8.05, above analysts’ expectations of $8.01. Analysts had projected revenue of $88.9 billion.
For the fiscal first quarter, Oracle forecast adjusted earnings per share between $1.72 and $1.76, with revenue growth of 27% to 29%. Analysts had been expecting earnings per share of $1.68.
Cloud infrastructure revenue climbed 93% to $5.8 billion during the quarter. Remaining performance obligations reached $638 billion as of May 31, representing a 363% increase and exceeding analysts’ estimates of $595.67 billion.
According to Bank of America analysts, more than half of Oracle’s remaining performance obligations are tied to OpenAI. The companies are partners in the Stargate project, an initiative focused on building artificial intelligence infrastructure in the United States.
Oracle executive Clay Magouyrk said during the company’s conference call that Oracle plans to bring nearly one gigawatt of computing power online during the current quarter, roughly matching the total amount deployed during fiscal 2026.
