Oracle cloud infrastructure revenue doubles, beating estimates

Oracle ↗ 3.55% reported fiscal first-quarter results on Thursday that exceeded Wall Street expectations across the board, with net income climbing 60% and cloud infrastructure revenue more than doubling as the company's aggressive push into AI-driven data center capacity began to pay off.

For the quarter ended August 31, Oracle posted GAAP net income available to common shareholders of $4.68 billion, or $1.56 per diluted share, up from $2.93 billion, or $1.01 per share, a year earlier. On an adjusted basis, earnings per share came in at $1.92, well ahead of the analyst consensus of roughly $1.74 to $1.75. Total revenue rose 30% to $19.3 billion.qz+2

The results sent Oracle shares higher in after-hours trading, according to CNBC.cnbc

Cloud Infrastructure Drives the Quarter

Cloud infrastructure revenue, the centerpiece of Oracle's AI strategy, surged 121% year over year to $7.4 billion, beating the $7.09 billion analyst consensus. Total cloud revenue, which includes both infrastructure and applications, climbed 62% to $11.6 billion. The growth rate accelerated from the prior quarter, when cloud infrastructure revenue had risen 93%.investinglive+2

Oracle said it brought 850 megawatts of new data center capacity online during the quarter and delivered more than 300,000 GPUs to AI cloud customers. Capital spending jumped to $28.5 billion from $8.5 billion a year earlier, leaving free cash flow at negative $5.4 billion despite a record $23.1 billion in operating cash flow.investor.oracle+1

Backlog Swells and Guidance Raised

Oracle's remaining performance obligations, a measure of contracted future revenue, rose to $664 billion, up $209 billion from a year earlier. The company said it booked more than $30 billion of additional AI cloud contracts in the quarter alone.investor.oracle

For the fiscal second quarter, Oracle guided for revenue growth of 30% to 34% and adjusted earnings per share of $1.85 to $1.93. For the full fiscal year 2027, the company raised its outlook, now expecting at least $90 billion in total revenue and non-GAAP earnings per share of $8.10.cnbc+1

The results arrive at a pivotal moment for the broader AI infrastructure trade. Oracle completed the sale of $20 billion in common stock through an at-the-market equity program during the quarter to help fund its expansion. Investors had been watching closely whether the company's massive spending would translate into revenue growth — or simply weigh on cash flows. Thursday's report offered evidence that, for now, demand is outpacing even Oracle's rapid capacity buildout.investinglive+1