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Oracle Beats Forecasts With Robust Q4 Growth And Bold AI Investment Strategy

Earnings And Revenue Outperformance

Oracle reported better-than-expected earnings and revenue for its fiscal fourth quarter while raising its annual profit forecast. Adjusted earnings per share came in at $2.03, surpassing LSEG consensus estimates of $1.96. Total revenue reached $19.18 billion, topping the anticipated $19.10 billion. With a year-over-year revenue growth of 21%, the company continues to demonstrate resilient performance despite market headwinds.

Strategic AI Financing And Investment

In a bid to accelerate its artificial intelligence initiatives, Oracle announced plans to secure an additional $40 billion through debt and equity financing, including a previously revealed $20 billion share sale. This follows substantial capital raises in fiscal 2026, which raised concerns about the viability of expanding AI demand. The move underscores Oracle’s commitment to scaling its AI infrastructure, a strategic choice that Chief Executive Officer Clay Magouyrk highlighted during a recent conference call.

Cloud Infrastructure And Software Revenue

Cloud services remained the company’s main growth driver. Revenue from cloud offerings increased 47% to $9.91 billion, while cloud infrastructure revenue surged 93% to $5.8 billion. Software revenue, including licences and support services, declined 2% to $6.82 billion.

Performance Obligations And Capital Expenditures

Remaining performance obligations (RPO) reached $638 billion as of May 31, representing a 363% increase from the previous year. Oracle attributed much of the growth to new AI-related contracts, including agreements involving prepayments for graphics processing units.

Management expects nearly one gigawatt of computing capacity to be operational during the current quarter. Net capital expenditures are projected to reach approximately $70 billion in fiscal 2027, excluding customer prepayments and timing-related adjustments.

Guidance And Leadership Updates

Oracle maintained its fiscal 2027 revenue forecast of $90 billion and raised its adjusted earnings per share outlook to $8.05, slightly above analyst expectations. For the fiscal first quarter, the company expects adjusted earnings of between $1.72 and $1.76 per share and revenue growth of 27% to 29%. In a leadership change, Oracle appointed former Schneider Electric executive Hilary Maxson as Chief Financial Officer. The company also recently secured funding for a $16 billion data centre project in Michigan.

Market Response And Future Outlook

Oracle shares initially fell in extended trading following the financing announcement, but have gained approximately 3% since the beginning of the year. Investors are closely watching whether the company’s expanding AI infrastructure investments and growing contract backlog will support future revenue growth.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

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