Oracle beats earnings expectations but shares fall on financing plans

Oracle reported strongerthanexpected fiscal fourthquarter earnings and revenue on Wednesday, while also lifting its profit outlook for the year. The company kept its revenue guidance unchanged, but investors focused on plans to raise more capital for its artificial intelligence infrastructure buildout. The stock fell in extended trading after Oracle said it expects to raise an additional $20 billion through equity and debt, adding to earlier financing plans. The company has been spending heavily on data centers and related infrastructure, which drove capital expenditures sharply higher and left free cash flow deeply negative for the fiscal year. Oracle said cloud revenue continued to grow quickly, led by cloud infrastructure, and its remaining performance obligations surged as large AIrelated contracts boosted future revenue commitments. Management said customer prepayments and supplied GPUs can reduce the company’s direct construction burden, but analysts and investors remain focused on the scale of spending needed to support demand.