Oracle shares drop despite record Q4 as guidance underwhelms

(Sharecast News) - Oracle's stock was set to tank on Thursday morning in New York after underwhelming forward guidance from the American software and cloud infrastructure outfit overshadowed record, forecast-beating fourth-quarter results. The company reported total revenues of $19.18bn for the fourth quarter, up 20% at constant currency. This was a new all-time high for the company and ahead of the $19.1bn expected by the market consensus.

Cloud revenues jumped 46% to $9.9bn, comprising a 9% rise in software-as-a-service revenues to $4.1bn and a 92% surge in infrastructure revenues to $5.8bn.

That translated into record adjusted earnings per share (EPS) of $2.11, up 24% year-on-year and comfortably ahead of the $1.96 expected by analysts.

For the full-year, revenues rose 16% to $67.4bn, while adjusted EPS were up 27% at $7.63.

For the first quarter of FY27, the company expects revenue growth of 27-29%, with earnings per share growth of 16-19% to $1.71-1.75 at constant currency.

For the full year, however, Oracle reiterated its prior revenue guidance of $90bn, which may come as a disappointment for investors since many industry peers have recently raised estimates on the back of surging demand from the AI sector.

Nevertheless, the company raised its EPS guidance to $8.05, representing 18% growth over FY26.

In pre-market trade, Oracle shares were down 6.4% at $188.29.