Oracle Shares Plunge After Hours as Heavy AI Spending Overshadows Earnings Beat

Oracle is transforming itself from a database software company into an AI cloud infrastructure provider. Long-term contracts with major AI customers lifted its remaining performance obligations to $638 billion as of May 31, 2026, up 363% from a year earlier. Whether that backlog can translate into profitable cash flow will be crucial to Oracle's ability to compete with cloud giants such as Amazon and Microsoft.

Oracle reported fiscal 2026 fourth-quarter revenue of $19.2 billion on June 10, 2026, up 21% year over year, and adjusted earnings of $2.11 per share, with both beating expectations. Cloud infrastructure revenue rose 93% to $5.8 billion. However, full-year capital expenditure reached $55.7 billion and could climb as high as $95 billion in fiscal 2027, while the company plans to raise $40 billion. Its shares plunged 10.7% in after-hours trading.