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Oracle will report fiscal fourth-quarter 2026 earnings after the closing bell on Wednesday. Investors are watching cloud growth, AI contracts, capital spending, and the company’s ability to deliver new data-center capacity.
Wall Street expects adjusted earnings of about $1.97 per share on revenue near $19.1 billion. A year earlier, Oracle posted earnings of $1.70 per share and revenue of $15.9 billion.
Oracle’s cloud business is expected to generate $9.99 billion in quarterly revenue. Cloud Applications revenue is projected at $4.16 billion, while Cloud Infrastructure revenue may reach $5.17 billion.
This infrastructure estimate represents growth of about 90.8% from the same quarter last year. Demand for computing capacity used to train and run AI models has supported Oracle Cloud Infrastructure, known as OCI.
Meanwhile, remaining performance obligations are forecast to reach $589.5 billion, up 327% from a year earlier. The figure measures contracts Oracle has signed but has not delivered.
OCI carries a backlog of about $553 billion. More than half is linked to one OpenAI agreement. The AI company signed a five-year cloud deal valued at about $300 billion in 2025.
The OpenAI contract is central to Oracle’s long-term cloud plans. Oracle expects OCI revenue to reach $166 billion in fiscal 2030, accounting for a large share of sales.
However, the contract’s size has raised questions about customer concentration. Oracle must secure chips, power, land, and construction capacity before recognizing much of the contracted revenue.
Research firms have said OCI sits ‘at the center’ of rising AI infrastructure demand. They have also warned that the growth plan ‘hinges on’ Oracle obtaining enough graphics processors and opening data centers on schedule.
Investors will watch management’s comments on construction delays, revenue timing, and capacity delivery. The call will also mark the first results presentation for Chief Financial Officer Hilary Maxson.
Oracle’s AI expansion requires large investments. Debt and lease liabilities rose 68% last quarter to $162 billion. The company also had about $261 billion in lease commitments that had not started as of February. Free cash flow has come under pressure as Oracle spends more on servers and data centers. Depreciation costs rose to 12.5% of sales from 7.1% a year earlier.
Adjusted operating margin is expected to fall to about 43% in the quarter. Oracle reported a 44% margin for fiscal 2025. Investors are likely to compare cloud growth with higher financing costs.
BofA recently raised its Oracle stock target to $240 from $200 and kept a Buy rating. The bank cited stronger cloud demand and reduced funding concerns after Oracle raised about $50 billion through debt and equity.
Oracle stock closed at $205.81 on Tuesday, down 2.84%, before falling further in Wednesday’s premarket trading. The shares have also dropped since the start of June.
However, Oracle stock has gained over the past 12 months. It recovered after the company beat third-quarter estimates in March and raised its fiscal 2027 revenue forecast to $90 billion.
Wednesday’s report will provide updated figures on cloud sales, AI backlog, spending, margins, and financing. Management’s guidance will offer more detail on when signed AI contracts may begin producing revenue.
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