Larry Ellison at Oracle OpenWorld Conference

Oracle cofounder Larry Ellison (Justin Sullivan/Getty Images)

Oracle Q4 earnings and revenue top estimates; hyperscaler plans more debt issuance to support massive capex push

The company posted Q4 FY 2026 earnings Wednesday after the bell.

6/10/26 4:14PM

Oracle reported fiscal fourth-quarter earnings on Wednesday against a backdrop of fresh AI jitters, fueled by conservative Broadcom guidance and macro pressure from hawkish jobs and inflation data. It also said it would issue tens of billions more in debt or equity to fund its AI infrastructure push.

The database software company turned hyperscaler posted revenue and earnings that beat analyst expectations:

Sales of $19.2 billion (estimate: $19.1 billion).
Adjusted earnings per share of $2.11 (estimate: $1.96). It would have been $2.03 without one-time net investment gains.
RPO (remaining performance obligations, or backlog) of $638 billion (estimate: $601.1 billion).
Oracle Cloud Infrastructure revenue of $5.8 billion, versus Wall Street’s $5.7 billion forecast.
Capital expenditure of $55.7 billion, above the $50.9 billion analysts had expected for the year.

Shares of the company fell 5% after-hours. Through Wednesday’s close, the stock was up just over 3% so far this year, slightly trailing the S&P 500.

Oracle has already raised a massive pile of debt to finance its AI aspirations, including $43 billion of debt financing in fiscal 2026. On Wednesday, the company indicated that binge would continue, saying it plans to raise a combined $40 billion via debt and equity in fiscal 2027, including a previously announced $20 billion equity issuance.

Notably, the company said the prepaid and customer-supplied hardware portions of its large AI contracts now total $75 billion, and that “this substantially reduces the amount of capital Oracle must raise to build out our AI datacenters.”

Oracle reiterated its prior revenue guidance for FY 2027 of $90 billion and raised its non-GAAP EPS guidance to $8.05.

On the earnings call, the company said it expects to spend $70 billion in net capex next year, with a total capex of $90 billion to $95 billion after including customer prepayments of $20 billion to $25 billion. Analysts had expected much less: $61.5 billion.

Beyond the top- and bottom-line beats, Wall Street’s focus remains squarely on Oracle’s massive remaining performance obligations (RPO), contracted future revenue that’s largely anchored by its partnership with OpenAI for the $500 billion “Stargate” supercomputer initiative. But anchoring so much of its future revenue to a single, cash-burning AI startup is a terrifying prospect for some investors, creating massive concentration risk if the broader AI boom cools.

To help de-risk this massive AI build-out, Oracle has demanded long-term capacity commitments and leaned into multi-cloud partnerships with rivals like Microsoft and Google. Still, concerns linger over whether Oracle can actually scale its capacity fast enough to meet the intense demand without buckling.

Skyrocketing capex has dragged on Oracle’s free cash flow to a deeply negative $23.7 billion for the year. While management stresses that customer prepayments and partner-funded models cover most of this new hardware, the cash drain keeps Wall Street anxious about Oracle’s mounting debt load. Ultimately, continued RPO growth is the key metric that will demonstrate whether Oracle’s strategy of locking in forward demand to fund its aggressive build-out is paying off.

Earlier today, Oracle won a contract with the Trump administration to provide HR software across US agencies — news that didn’t move the stock.

Chris Stokel-Walker

Bot bias

6/17/26

Companies are getting AI chatbots to smear their competitors

The race to influence AI chatbots is leading to some companies to adopt shady competitive tactics.

Tom Jones6/17/26

Prediction markets have, predictably, been given a boost by the summer of sports

Major platforms like Kalshi and Polymarket have seen huge upticks in users of late, thanks in no small part to what’s felt like a recent sporting smorgasbord, with major competitions across hockey, basketball, and soccer soaking up fans’ time (and spending, clearly) at the outset of summer.

While gaming industry groups may not like it, there’s been a huge change in the methods people are using to put money on the big games, with everyone from fortunate NYC bar owners, to a far less fortunate Spanish supporter, turning to prediction markets to try and turn their sports know-how into cold, hard cash.

According to a new report from Adam Blacker for apptopia, that shift might have been even more seismic than imagined in the wake of the NBA and NHL finals and around the 2026 World Cup kicking off.

2026 World Cup Reverses Seasonal Lull for Sports Betting Apps

According to a new report from Adam Blacker for apptopia, that shift might have been even more seismic than imagined in the wake of the NBA and NHL finals and around the 2026 World Cup kicking off.

South by Southwest Conference and Festivals

Gold Tesla Cybercabs are piling up, but they’re not picking up passengers yet

Low-volume production started in April. Now people are noticing them more and more in the wild.

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TAKING ACCOUNTS

6/15/26

Britain announces social media ban for under-16s starting early 2027

The UK government plans to use the same model for the restrictions as Australia — but how successful has that case study been so far?

UK Prime Minister Announces Under-16s Social Media Ban

Jon Keegan6/15/26

Anthropic pulls Fable and Mythos access worldwide after Trump administration bars their use by foreign nationals

Only days after releasing two versions of its next-gen AI model, Anthropic has disabled them for users worldwide.

Anthropic says it received a Friday night order from the Trump administration to suspend access to the models for any foreign national (anywhere in the world) — a group that included some Anthropic employees. In response, the company turned off access to everyone.

Last week, the company released to the public its much-anticipated Claude Fable 5 model (and its restricted version Claude Mythos 5, which is still being tested with trusted partners). Anthropic said in a blog post announcing the action that officials cited national security concerns with the new models, while offering few specific details.

The post said that the government gave the company “verbal evidence of a potential narrow, non-universal jailbreak” of the public Fable 5 model. A jailbreak is a means by which users can evade restrictions built into the code to unlock prohibited functionality. Anthropic downplayed the significance of the attack, and said other major models, such as OpenAI’s GPT-5.5, could also be affected by the technique described.

Fears of these first Mythos-class models being misused are running high, after Anthropic warned the cybersecurity world in May that the advanced cyber capabilities of Mythos have rapidly discovered thousands of vulnerabilities in ubiquitous software, leading to the decision to restrict the full version of the model to a close group of trusted partners for testing.

This morning, Axios reported that Anthropic technical staff have flown to Washington to meet with White House officials to resolve the issue.

The Wall Street Journal is reporting that the Trump administration’s decision to take action against Anthropic was prompted by discussions that Amazon CEO Andy Jassy had with officials, including Treasury Secretary Scott Bessent. According to the report, Amazon researchers said they had been able to evade some of Fable 5’s security restrictions using specific prompts. Amazon is a major investor in Anthropic.

Anthropic is currently suing the US government to fight the Pentagon’s blacklisting of the company on national security grounds.

Statement on the US government directive to suspend access to Fable 5 and Mythos 5