No reward for Oracle's beat
6/11/20265 min
Oracle (ORCL) slips even as Q4 results, guidance top estimates. (00:13) Xbox (MSFT) to reboot with layoffs, budget cuts -- Bloomberg. (01:16) Eyes on the sky: Walmart (WMT) and Alphabet's Wing (GOOGL) (GOOG) expand their drone delivery program. (02:08)
Episode transcripts seekingalpha.com/wsb.
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Transcript preview
First 90 secondsJulie Morgan· Host0:00
[instrumental music] Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. It's good to be with you on this Thursday, June 11th. I'm Julie Morgan. Oracle is down 9% in early trading after falling more than 2% on Wednesday. The IT giant reported fiscal fourth quarter results and guidance that topped Wall Street's forecast. For the period ending May 31st, Oracle said it earned an adjusted $2.11 per share as revenue rose 21% year over year to 19.18 billion. Analysts had expected adjusted earnings of $1.97 per share on 19.09 billion in revenue. Oracle also highlighted a massive $638 billion remaining performance obligation backlog fueled by large AI contracts, and guided fiscal year 2027 revenue to $90 billion, which is above consensus. However, declines in software license and support revenue, along with plans to raise $40 billion through debt and equity financing to fund AI data center expansion appear to overshadow the strong quarter and outlook. Microsoft's Xbox is planning major layoffs at the end of the company's fiscal year on June 30th. According to sources cited by Bloomberg, this is part of a sweeping reorganization of the business under its new CEO.