05:33 AM EDT, 06/11/2026 (MT Newswires) -- (Updates with the stock move, gross margin, and capex in the first, ninth, 10th, and 11th paragraphs.)

Oracle (ORCL) shares were down 6% in Thursday's premarket activity after the company said gross margin will continue to decline in the current financial year and it is planning equity and debt to help fund a projected surge in capital expenditure in fiscal 2027, taking the shine off its fiscal Q4 beat.

The company reported fiscal Q4 adjusted earnings late Wednesday of $2.11 per diluted share, up from $1.70 a year earlier.

Analysts polled by FactSet expected $1.96.

Revenue for the three months ended May 31 was $19.18 billion, up from $15.90 billion a year earlier.

Analysts expected $19.10 billion.

For fiscal Q1, the company expects adjusted EPS of $1.72 to $1.76 on revenue growth of 27% to 29%. Analysts expect EPS of $1.68.

The company said it reiterated its full-year fiscal 2027 revenue guidance of $90 billion and raised its adjusted EPS guidance to $8.05. Analysts expect revenue of $88.78 billion and EPS of $8.02.

The company maintained its quarterly dividend at $0.50 per share, payable July 24 to stockholders of record July 10.

For the full year, Oracle's gross margin declined by about 5 points, as expected, as the company starts to see the impact of the build-out of its infrastructure business, Chief Financial Officer Hilary Maxson said at an earnings conference call late Wednesday, per a FactSet transcript.

"Fiscal year 2027 gross margins will step down due to timing for the ramp-up of our data center projects into their full revenue contribution, plus impacts from mix," Maxson said in the call.

Oracle is expected to have a net cash outlay for capital expenditures of around $70 billion in fiscal 2027, up from $48 billion a year ago, according to the FactSet earnings call transcript.

Oracle plans to raise about $40 billion via debt and equity issuances in fiscal 2027, including its previously announced $20 billion stock sale. That follows $43 billion raised in debt and $5 billion in equity financing in the financial year just ended.