tech
Oracle beats on earnings, but stock drops on plans to raise another $20 billion
Oracle topped quarterly expectations, but free cash flow is negative, and the company plans to raise more capital for data center projects.
TL;DR
- Oracle reported better-than-expected earnings of $2.03 per share and revenue of $19.18 billion for its fiscal fourth quarter.
- The company plans to raise approximately $40 billion through debt and equity financing to fund its AI infrastructure development.
- Oracle's cloud infrastructure revenue surged by 93% to $5.8 billion, and its remaining performance obligation increased significantly to $638 billion.
- Despite strong revenue growth, Oracle reported negative free cash flow of $23.7 billion for the fiscal year, with capital expenditures rising substantially.
- The company's stock dropped 10% in extended trading following the announcement of its capital-raising plans and negative free cash flow.