Oracle stock jumped late Wednesday after the enterprise technology giant reported fiscal fourth-quarter results that topped expectations. Company executives also said they expect their fiscal 2026 revenue to be "dramatically" higher, as Oracle sees benefits from its AI and cloud services push.
Austin, Texas-based Oracle said that it earned an adjusted $1.70 per share for the May-ended quarter, up 4% from a year earlier. That beat the adjusted $1.64 per-share that analysts polled by FactSet were forecasting. Sales increased 11% to $15.9 billion, compared to analyst estimates of $15.6 billion.
Oracle's closely-watched cloud infrastructure business grew revenue 52% to $3 billion for the quarter, ticking up from 49% growth in the previous February-ended Q3. Oracle Cloud Infrastructure is a key part of Oracle's push to be an AI leader. It provides cloud-computing services to enterprises, competing against cloud giants Amazon and Microsoft.
Meanwhile, the company said its remaining performance obligations (RPO), a measure of backlogged work, grew 41% to $138 billion.
Chief Executive Safra Catz said Oracle expects its growth will be "dramatically higher" during its current May-ending fiscal 2026.
"We expect our total cloud growth rate — applications plus infrastructure — will increase from 24% in FY25 (fiscal year 2025) to over 40% in FY26," Catz said in a news release. "Cloud Infrastructure growth rate is expected to increase from 50% in FY25 to over 70% in FY26. And RPO is likely to grow more than 100% in FY26. Oracle is well on its way to being not only the world's largest cloud application company — but also one of the world's largest cloud infrastructure companies."
Chairman Larry Ellison added that Oracle Cloud Infrastructure revenue "growth rates are skyrocketing — so is demand."
On the stock market today, Oracle stock is up more than 6% at 187.70 in recent after-hours trading.
Oracle Bounces Back
Oracle stock sold off after its previous February-quarter earnings, which missed earnings and sales estimates.
Barclays analyst Raimo Lenschow, who holds an overweight call on Oracle stock, said Oracle's May-quarter results were "across the board better" in a note to clients Wednesday afternoon.
"We point to the strong RPO growth and comments about even stronger RPO growth next year (think Stargate), which means we see the cloud number as acceptable and initial guidance commentary points to much better growth next year," Lenschow wrote.
Oracle is a partner in the Trump-endorsed Stargate initiative, along with SoftBank, OpenAI and others. The project aims to open a series of new data centers focused on AI across the U.S., backed by private investment of $100 billion that could reach $500 billion by 2029.
Oracle Stock's Recent Rally
Prior to earnings, Oracle fell a half-percent in regular Wednesday trading. Shares have gained 6.5% so far this year and are up 44% compared to 12 months ago.
That includes a recent rally of nearly 50% from a 2025 low-point reached on April 11. Concerns about the company's heightened AI spending and the broader economy weighed on shares earlier this year.
Back-to-back earnings letdowns didn't help either. But investor optimism was rising heading into the report, on the heels of a U.S. trade deal with China and a strong earnings season for some of Oracle's tech peers.
Meanwhile, Oracle stock has an IBD Composite Rating of 87 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
