Oracle Q4 Revenue Tops Expectations at $15.9Billion; Shares Surge 8% After-Hours; Aim to Become the 'Top Player' in Data Centers

TradingKey - Oracle (ORCL) saw its stock price soar about 8% in after-hours trading on Wednesday, primarily due to its fourth-quarter earnings that exceeded expectations and indicated accelerating growth in its cloud computing business.

The financial report reveals that the company recorded a revenue of $15.9 billion, an 11% year-over-year increase, that topped the $1.59 billion expected by analysts. And adjusted earnings per share (EPS) of $1.70, higher than the expected $1.64

The core growth engine came from the cloud business, with cloud services and license support revenue increasing by 14% year-over-year to $11.7 billion. The surge in demand for Oracle Cloud Infrastructure (OCI) has become a key driver, partly due to robust enterprise demand for AI computing power.

Management also raised its revenue guidance for fiscal year 2026, expecting total annual revenue to exceed $67 billion with an increased year-on-year growth rate from $25 billion for next year, exceeding analysts' expectations.

Even more noteworthy is that the target total growth rate for the cloud business jumped from 24% in fiscal year 2025 to over 40%, highlighting the explosive potential of OCI expansion.

Founder and CTO Larry Ellison emphasized that Oracle is accelerating its deployment of global cloud infrastructure to become "the number one player in data center construction and operations."

Rebecca Wettemann, CEO of industry analysis firm Valoir, pointed out that Oracle's growth stems from enterprise clients' deep reliance on multi-cloud strategies and OCI. As enterprise data volumes surge, OCI is attracting more businesses to migrate their core operations to cloud solutions thanks to its high cost-effectiveness and customized services.