Oracle Corporation (ORCL) reported record Q4 sales of $19.18 billion on Thursday, exceeding Wall Street’s expectations of approximately $19 billion and increasing 20% from $15.9 billion a year prior. The company’s earnings per share (EPS) for the quarter reached $2.11, surpassing forecasts of $1.96 and rising 24% from $1.70 in Q4 of the previous year.
Despite these strong results, shares fell over 10% in trading on Thursday due to heightened investor concerns regarding Oracle’s capital expenditures, which totaled approximately $55.66 billion in FY26. This spending is primarily directed toward expanding AI data-center capacity, raising doubts about the immediate profitability of its ambitious growth plans. Oracle’s annual sales for FY26 also reached a record $67.36 billion, with management projecting Q1 sales growth of 27-29% and reaffirming its goal of $90 billion in total revenue for FY27.
The company reported a remaining performance obligation (RPO) backlog of $638 billion and raised its FY27 EPS guidance to $8.05, slightly above analyst forecast of $8.00. However, Oracle’s current trading multiple of 31X forward earnings is significantly higher than its historical median of 18X, prompting caution among investors evaluating its future growth potential.
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