Oracle Corporation · ORCL · FY2026 Q4 · Calendar Q2 2026

Oracle Q4 FY26: Revenue Up 21%, RPO Hits $638B, but $70B CapEx Plan Pressures Shares

Oracle closed FY2026 with a record fourth quarter, posting $19.2B in revenue (up 21% YoY) and beating EPS estimates by 7.7%. The quarter was defined by explosive AI infrastructure demand: cloud infrastructure grew 93%, RPO surged 363% to $638B, and the company signed $67B in new AI contracts at 97.5% GPU utilization. Management raised FY27 guidance to approximately 34% revenue growth and $8.05 non-GAAP EPS. However, the capital intensity required to deliver on this backlog is unprecedented: a $70B net CapEx plan, only partially offset by $20-25B in customer pre-payments. The market reacted sharply negatively, with the stock falling 8.5% on the next session and drifting 28.5% lower subsequently, suggesting investors are questioning whether the margin profile and cash-flow generation of this AI infrastructure ramp will justify the massive capital outlay.

Reported After market closeNYSETechnology $345.57B market cap
100quality score

Company context

Snapshot as of publication

Oracle Corporation, a global technology giant, provides a comprehensive suite of enterprise information technology solutions worldwide. A core part of its portfolio comprises cloud-based software-as-a-service (SaaS) applications, including the Oracle Fusion Cloud suite covering enterprise resource planning (ERP), enterprise performance management (EPM), supply chain and manufacturing management (SCM), and human capital management (HCM). This also extends to specialized offerings like Oracle Advertising, the NetSuite application suite, and Oracle Fusion solutions for Sales, Service, and Marketing. Beyond these, Oracle develops cloud solutions tailored for various specific industries, alongside traditional application licenses and comprehensive license support services. Furthermore, the company's robust cloud and licensing business is underpinned by its infrastructure technologies.…

Earnings scorecard

Reported versus consensus
Reported EPS $2.11 Consensus $2
EPS surprise +7.7% Reported versus consensus
Reported revenue $19.18B Consensus $19.10B
Revenue surprise +0.4% Reported versus consensus

Market reaction

event-close to next-session close
Stock move -8.5% Event window
SPY move +1.7% Same window
Abnormal move -10.2% Stock minus SPY
Volume 2.8× Versus trailing sessions
Subsequent drift -28.5% Up to 20 sessions
ORCLSPY benchmark

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Transcript intelligence

What changed

Oracle reported FY2026 Q4 revenue of $19.184B (up 21% YoY), beating the $19.101B consensus estimate by 0.4%. Non-GAAP EPS of $2.11 exceeded the $1.96 estimate by 7.7%. Cloud infrastructure revenue grew 93% YoY and cloud applications grew 10% YoY. The company signed $67B in new AI infrastructure contracts during the quarter, bringing bring-your-own-hardware contracts to $75B total. RPO surged 363% to $638B. GPU utilization reached 97.5%. Management raised FY27 guidance to ~34% revenue growth and $8.05 non-GAAP EPS, while announcing a $70B net CapEx program partially offset by $20-25B in customer pre-payments. New outcome-based and token-bundle pricing models were introduced, with token bundles reaching 33 customers in a limited rollout. Despite the beat and raised guidance, the stock fell 8.5% in the next session (abnormal move of -10.2% vs SPY +1.7%) and drifted 28.5% lower subsequently on volume 2.8x baseline.

Guidance delta

Management raised FY27 guidance to approximately 34% revenue growth and non-GAAP EPS of $8.05, an acceleration from the 21% YoY growth delivered in Q4 FY26. The prior quarter (Q3 FY26) also carried a raised guidance sentiment. The raised outlook is underpinned by the $638B RPO backlog and $67B in quarterly AI infrastructure contract signings, but the $70B net CapEx commitment marks a significant step-up in capital intensity compared to prior periods.

Key takeaways

  • Q4 FY26 revenue of $19.2B grew 21% YoY, beating estimates; EPS of $2.11 beat by 7.7%.
  • Cloud infrastructure revenue grew 93% YoY, driven by surging AI workload demand.
  • RPO surged 363% to $638B, providing exceptional multi-year revenue visibility.
  • $67B in new AI infrastructure contracts signed in the quarter; BYOH contracts now total $75B.
  • GPU utilization at 97.5% indicates near-full capacity utilization.
  • FY27 guidance raised to ~34% revenue growth and $8.05 non-GAAP EPS.

Management priorities

  • Scaling AI infrastructure capacity with new data-center sites in Texas, New Mexico, Michigan, and Wisconsin.
  • Rolling out AI functionality across the Oracle database and applications stack.
  • Expanding token-bundle and outcome-based pricing models from limited rollout to broader customer base.
  • Executing the $70B CapEx program while leveraging $20-25B in customer pre-payments to manage cash flow.
  • Maintaining high GPU utilization and converting RPO into recognized revenue.

Related earnings events

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Sources

  1. Earnings call transcript and parsed analysis · 2026-06-10T23:25:01.756912+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-28T09:22:48.929310+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-28T09:22:48.926532+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.