Oracle's revenue narrowly beats amid worries over debt-fueled AI buildout

Oracle's revenue narrowly beats amid worries over debt-fueled AI buildout June 10 : Oracle reported fourth-quarter revenue that narrowly beat Wall Street expectations on Wednesday, amid growing concerns about its spending and AI-driven disruption to traditional software demand. The cloud computing company's shares fell 5 per cent in extended trading, after it said it expects to raise nearly $40 billion through a combination of debt and equity financing in fiscal 2027. This includes its previously announced $20 billion at-the-market equity issuance. Investors have scrutinized Oracle's AI infrastructure build-out as its debt climbs. The company said in February it planned to raise as much as $50 billion this year through a combination of debt and equity sales. Oracle's results will likely amplify investor concerns about AI-driven disruption to traditional software demand and the high debt levels on the company's balance sheet. The software industry is contending with growing investor concerns that AI tools could pull enterprise clients away from traditional software by taking over tasks once done by their products. Oracle reported total revenue of $19.18 billion for the quarter, compared with analysts' average estimate of $19.10 billion, according to data compiled by LSEG. Remaining performance obligations, a key indicator of future contracted revenue, grew 15.4 per cent to $638 billion, ahead of Visible Alpha estimates of $592.52 billion. Its adjusted profit of $2.11 per share for the fourth quarter exceeded expectations of $1.96.