Oracle Q4 Beats; $300B OpenAI Deal, $70B Data-Center Plan

Oracle reported fourth-quarter revenue of $19.2 billion and said its shares fell about 8% after hours following the results. The company announced a five-year cloud services agreement with OpenAI that begins in fiscal 2027 and outlined a $70 billion plan to expand data-center capacity.

The quarter topped analysts’ estimates by a small margin. Oracle reported flat guidance for the coming quarter and said it cut more than 30,000 jobs in the period, reallocating payroll savings toward infrastructure investment.

Under the OpenAI agreement, which starts in fiscal 2027 and runs five years, OpenAI is expected to pay Oracle roughly $60 billion per year for cloud compute. Oracle described the arrangement as a committed revenue stream to support its planned buildout.

Oracle reported cloud revenue growth of 47% year over year and Oracle Cloud Infrastructure revenue up 93%. Remaining performance obligations were reported at $638 billion.

To fund construction and capacity expansion, the company raised $48 billion in debt and equity in fiscal 2026 and plans to raise an additional $40 billion in fiscal 2027. Investors reacted to the heavy financing and the slow timeline for revenue from new data centers by sending the stock down about 8% after the earnings release and nearly 8% for the week.

Management noted that building data centers at the announced scale will take time and that the company’s near-term guidance did not reflect a pickup in returns from the planned spending.

Industry spending on AI infrastructure expanded in recent years and Oracle’s expected share of those workloads increased after the OpenAI agreement. Market participants and investors will monitor Oracle’s next quarterly report for signs that the infrastructure investments and the OpenAI contract translate into sustained revenue growth and higher margins.