Oracle Q1 FY2027 earnings beat as cloud infrastructure revenue doubles

Oracle Q1 FY2027 earnings beat as cloud infrastructure revenue doubles

Thu, September 10, 2026 at 11:36 PM GMT+3 2 min read

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Oracle reported fiscal first-quarter results on Thursday that topped analyst estimates, sending Oracle stock up 7% in after-hours trading.

Cloud infrastructure revenue more than doubled, rising 121% to $7.4 billion in the quarter ended Aug. 31. Total cloud revenue climbed 62% to $11.6 billion. Overall revenue grew 30% year over year to $19.35 billion. Analysts polled by LSEG had expected $19.14 billion in revenue, according to CNBC.

Oracle posted adjusted earnings of $1.92 per share, a 30% increase compared with the prior-year period. Analysts had forecast $1.74, according to CNBC. On a GAAP basis, net income available to common shareholders was $4.68 billion, or $1.56 per diluted share, compared with $2.93 billion, or $1.01 per share, in the year-ago quarter.

Oracle's remaining performance obligations reached $664 billion at quarter's end, a $209 billion increase from the same period a year ago; the figure encompasses contracted but unrecognized revenue, deferred revenue, and uncollected invoices. Oracle booked more than $30 billion in new AI cloud contracts during the quarter, the company said. Analysts polled by StreetAccount had expected $630.6 billion, according to CNBC.

Capital spending jumped to $28.5 billion, compared with $8.5 billion in the same quarter last year; Oracle said it brought 850 megawatts of new data center capacity online and delivered more than 300,000 GPUs to AI cloud customers during the period. Operating cash flow reached a record $23.1 billion, up 184%, though free cash flow was negative $5.4 billion as spending on cloud infrastructure continued.

For the fiscal second quarter, Oracle forecast adjusted earnings per share of $1.85 to $1.93 and total revenue growth of 30% to 34%. Looking further out, Oracle raised its full-year fiscal 2027 outlook to a minimum of $90 billion in revenue alongside adjusted earnings of $8.10 per share.

The software segment, which covers Oracle's legacy on-premises offerings, generated $5.5 billion in revenue, a 3% decline, as the customer base continued shifting toward cloud services, the company said.

Oracle had planned a new round of job cuts ahead of the start of its fiscal second quarter as it borrowed heavily to fund its AI data center buildout. The company's capital expenditures for fiscal 2026 totaled $55.7 billion, leaving it with a cash outflow of $23.7 billion more than it generated. Oracle's total debt now stands at $125 billion. Oracle stock had dropped 22% this year through Thursday's close, while the S&P 500 had gained roughly 11%.