Oracle Shares Jump 6% After Earnings Selloff

Oracle shares climbed about 6% to near $194 on Monday after an earlier selloff, supported by a broad market rally following President Donald Trump’s announcement of an agreement to end the U.S.-Iran war and by Mizuho maintaining an Outperform rating with a $320 price target.

The Dow Jones Industrial Average gained about 630 points to an intraday high, the S&P 500 rose 1.6% and the Nasdaq added 2.4%, drawing investors back into large-cap technology stocks. Oracle had entered the session down roughly 18% for the month after a steep decline earlier in June.

Oracle reported fiscal fourth-quarter revenue of $19.18 billion, up 21% year over year and slightly above expectations of about $19.1 billion. Adjusted earnings per share were $2.03, compared with a consensus of $1.96.

Cloud infrastructure revenue was a major growth driver, with infrastructure-as-a-service sales rising 93% to $5.8 billion in the quarter as new capacity, including the Abilene supercluster, came online.

The company reported negative free cash flow of $23.7 billion for the fiscal year and plans to raise about $40 billion through debt and equity, including a previously announced $20 billion share sale. Oracle had already raised roughly $43 billion of debt and $5 billion of equity during fiscal 2026, and capital spending increased 162% to $55.7 billion.

New chief financial officer Hilary Maxson projected net cash outflows related to capital expenditures of about $70 billion for fiscal 2027, excluding $20 billion to $25 billion of customer prepayments. Oracle kept its fiscal 2027 revenue target at $90 billion and raised adjusted EPS guidance to $8.05.

For the fiscal first quarter, Oracle forecast adjusted EPS of $1.72 to $1.76 and revenue growth of 27% to 29%. Remaining performance obligations, a measure of contracted future revenue, rose 363% year over year to $638 billion as of May 31.

Market analysts expressed differing views on Oracle’s spending and growth path. Piper Sandler characterized the shares as likely to remain debated while maintaining a constructive view on AI-driven consumption growth.

Investors will monitor whether the company’s large AI and infrastructure expenditures translate into sustained, profitable growth over the coming years.