Oracle's Q4 Double Beat Shouldn't Have Sent Shares Down By 10%. What Spooked Investors?

Oracle posted a strong Q4, delivering revenue of $19.2 billion, up 21% year-over-year, and adjusted earnings of $2.11 per share, above the $1.96 consensus. The company also raised its full-year revenue target to about $90 billion and lifted non-GAAP EPS guidance to $8.05, while operating cash flow reached $32.0 billion and free cash flow remained negative at $23.7 billion. Remaining performance obligations surged to $638 billion, a 363% year-over-year jump driven largely by OpenAI as a major customer. However, cloud revenue missed at $9.91 billion, underscoring ongoing capex challenges despite robust top-line growth.