Oracle Q4 earnings disappoint on cloud revenue, stock falls 6%

June 11, 2026 - 00:15

Oracle's fourth-quarter earnings report, released after the closing bell on Wednesday, failed to impress investors as cloud revenue growth came in below analyst forecasts. The tech giant's stock dropped 6% in after-hours trading, reflecting disappointment with the performance of its cloud infrastructure and software-as-a-service segments.

For the quarter ending May 31, Oracle reported adjusted earnings per share of $1.63, slightly above the $1.60 expected by Wall Street. However, total revenue of $13.8 billion missed the consensus estimate of $13.9 billion. The cloud services and license support segment, a key growth driver, generated $9.5 billion, up 10% year-over-year but still below the $9.6 billion analysts had projected.

Investors had been watching closely for signs that Oracle's aggressive push into cloud computing, including partnerships with rivals like Microsoft and Google, was gaining momentum. While the company highlighted a 22% increase in cloud infrastructure revenue, the overall cloud growth rate of 19% lagged behind competitors such as Amazon Web Services and Microsoft Azure.

CEO Safra Catz pointed to strong demand for Oracle's autonomous database and AI-related workloads, but the market focused on the miss. "We are seeing solid traction in our cloud business, but the pace of adoption is not yet where we want it to be," she said during the earnings call.

The results mark a setback for Oracle's efforts to reinvent itself as a cloud-first company. The stock had rallied nearly 20% this year before the report, driven by optimism around its AI capabilities. Now, with the cloud revenue gap, some analysts are questioning whether the company can sustain its growth trajectory in a fiercely competitive market. Oracle's guidance for the current quarter also came in below expectations, adding to the bearish sentiment.