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Jon Keegan & David Crowther

Oracle sinks as cloud division misses and company plans $15 billion more capex

Shares of Oracle fell in after-hours trading Wednesday — and remained under pressure in the premarket session Thursday morning, down more than 11% as of 5:20 a.m. ET — after a headline beat on earnings was overshadowed by softer revenue.

Adjusted earnings per share were $2.26, up 54% year on year, blowing past analyst expectations of $1.64 per share. However, this beat was primarily due to the disposal of its Ampere chip company to SoftBank, which boosted pretax earnings by $0.91 per diluted share, Barron’s reported.

Revenue for the quarter was $16.06 billion, up 14% year on year but missing estimates of $16.2 billion.

The big weakness weighing most heavily on the stock this morning seems to be Oracle’s cloud computing unit, where sales came in at $8 billion for the quarter, up 34% year on year. Analysts had been expecting $8.8 billion.

The other major talking point heading into the print — how much Oracle was investing in capex for new data centers — has proven to be another sticking point again. On the earnings call, Doug Kehring, the company’s principal financial officer, said:

“...given the added RPO this quarter that can be monetized quickly starting next year, we now expect fiscal 2026 CapEx will be about $15 billion higher than we forecasted after Q1.”

That will do little to alleviate concerns around Oracle’s diverging free cash flow and net income, though the company’s execs did also say that they expect total cloud revenue to grow 40% to 44% in the coming quarter. Leadership also said they believe they can convert some of the added backlog to revenue sooner than expected, adding $4 billion of “additional revenue in FY27.”

Oracle shares got a huge boost in September, after the company announced a $300 billion deal with OpenAI, but all of that value has since disappeared. Shares are up 30% for the year so far.

Last quarter, Oracle reported $455 billion in RPOs (remaining performance obligations, or backlogged business). For this quarter, the figure was up to $528 billion, having risen 438% from the same period last year.

On selling its interest in the Ampere chip company, Oracle Chairman and CTO Larry Ellison said:

“We are now committed to a policy of chip neutrality where we work closely with all our CPU and GPU suppliers. Of course, we will continue to buy the latest GPUs from Nvidia, but we need to be prepared and able to deploy whatever chips our customers want to buy. There are going to be a lot of changes in AI technology over the next few years and we must remain agile in response to those changes.”

Oracle shares got a huge boost in September, after the company announced a $300 billion deal with OpenAI, but all of that value has since disappeared. Shares are up 30% for the year so far.

Last quarter, Oracle reported $455 billion in RPOs (remaining performance obligations, or backlogged business). For this quarter, the figure was up to $528 billion, having risen 438% from the same period last year.

On selling its interest in the Ampere chip company, Oracle Chairman and CTO Larry Ellison said:

“We are now committed to a policy of chip neutrality where we work closely with all our CPU and GPU suppliers. Of course, we will continue to buy the latest GPUs from Nvidia, but we need to be prepared and able to deploy whatever chips our customers want to buy. There are going to be a lot of changes in AI technology over the next few years and we must remain agile in response to those changes.”

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Luke Kawa

Richtech Robotics soars after announcing partnership with Microsoft to use AI to improve its robots

Shares Richtech Robotics are surging in premarket trading after the company announced “a hands-on collaboration with Microsoft through the Microsoft AI Co-Innovation Labs to jointly develop and deploy agentic artificial intelligence capabilities in real-world robotic systems.”

Per the press release, the two companies worked together to imbue Richtech’s flagship ADAM robot with “additional layers of context awareness” to “support smoother workflows and more responsive customer interactions in retail environments.”

Apropos of nothing, here’s an ADAM robot serving Nvidia CEO Jensen Huang a margarita:

Richtech was one of many robotics and vaguely robotics companies that caught a massive bid in early December after Politico reported that the Commerce Department was poised to go “all in” to support the industry. To date, there's been no evidence of such a plan, but that hasn’t stopped robotics stocks from having a phenomenal start to 2026. The Themes Humanoid Robotics ETF, which counts Richtech as one of its members, gained nearly 50% year-to-date through Thursday’s close, though it has since come off the boil.

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Max Knoblauch

Boeing posts its second straight quarter of positive free cash flow, revenue beats estimates

Boeing reported its fourth-quarter and full-year earnings before the market opened on Tuesday.

Boeing posted adjusted earnings of $9.92 per share, compared to the $0.44 loss per share expected by Wall Street analysts polled by FactSet. Those earnings, however, aren’t comparable to estimates because they reflect a massive gain from the close of Boeing’s sale of its digital aviation assets, which the company said boosted overall earnings by $11.83 per share.

The plane maker generated $375 million in free cash flow, its second straight quarter of positive FCF following six consecutive quarters of negative results. Wall Street expected $207 million.

Boeing last year saw significant recovery from its bleak 2024, improving its commercial deliveries by 72%. The company logged nearly 1,200 plane orders in 2025, outselling European rival Airbus for the first time since 2018. Boeing’s revenue climbed 57% in the fourth quarter to $23.95 billion, beating estimates of $22.6 billion. Its total backlog grew to $682 billion.

In October, US regulators approved an increase to the monthly cap on 737 production from 38 to 42 planes.

Luke Kawa
1h
D-Wave Quantum jumps on $20 million system sale, deal with Davidson and Anduril for US air and missile defense

D-Wave's CEO had previously lamented feeling left out in the cold by the US government. Today's announcements may give it a foothold.

Julich Research Center Inaugurates Europe's First 5,000+ Qubit Quantum Computer
markets
Max Knoblauch

American Airlines gives upbeat full-year guidance, lifting shares

American Airlines gave a rosy projection for full-year earnings that has the stock taking to the skies on Tuesday.

For the full year, American forecast adjusted earnings of between $1.70 and $2.70 per share, putting the midpoint of $2.20 significantly higher than analysts’ consensus estimate of $1.97 per share. The carrier also guided for more than $2 billion in free cash flow in 2026, more than double Wall Street’s expectations.

American shares are up about 3.2% in premarket trading as of 7:35 a.m. ET, after the release of its fourth-quarter and full-year earnings reports, which included the guidance.

The airline’s earnings for the quarter missed Wall Street’s expectations, with adjusted earnings of $0.16 per share. Analysts polled by FactSet expected $0.37 per share.

American, the third of the big four US airlines to cap off its 2025 fiscal year, said it expects a loss of between $0.10 and $0.50 per share in the first quarter of 2026. Analysts expected a loss of $0.29 per share.

Passenger revenue reached $12.66 billion in Q4, up 2.1% from last year but below estimates of $12.72 billion. American produced an adjusted operating margin of 3.5% in the quarter, compared to 8.4% in the same quarter a year ago.

American also announced a $325 million hit to its revenue from the government shutdown.

And it said the winter storm that has caused widespread cancellations this week will negatively impact revenue by between $150 million and $200 million.

markets
Max Knoblauch

JetBlue sinks on deeper-than-expected loss, forecasts higher costs in 2026

America’s sixth-largest airline, JetBlue, reported its fourth-quarter earnings on Tuesday morning.

For the quarter that ended in December, JetBlue reported an adjusted loss per share of $0.49, a deeper loss than the $0.46 figure expected by Wall Street analysts polled by FactSet. Its passenger revenue dropped 2.2% from the year before to $2.05 billion, beating estimates of $2.02 billion. Still, the airline has now posted year-over-year passenger revenue declines for three years in a row.

JetBlue said it expects its costs per seat mile excluding fuel to rise between 3.5% and 5.5% in the first quarter this year, and between 1% and 3% in 2026. The carrier guided for a boost in capacity between 0.5% and 3.5% in the first quarter of 2026, and between 2.5% and 4.5% for the full year.

JetBlue plans to roll out first class seating to its fleet this year, amid an industry-wide premium push.

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