Oracle topped Wall Street expectations for first-quarter revenue and raised its annual profit forecast, driven by surging enterprise demand for AI-powered cloud services.
The company reported fiscal first-quarter results that beat analyst estimates, sending Oracle stock up 7% in after-hours trading on the strength of its cloud business.
Cloud infrastructure revenue more than doubled during the quarter, rising 121% to $7.4 billion for the period ended August 31.
Total cloud revenue climbed 62% to $11.6 billion, while overall revenue grew 30% year over year to $19.35 billion.
Oracle posted adjusted earnings of $1.92 per share, a 30% increase compared with the prior-year period, well ahead of the analyst consensus forecast of $1.74.
The company added more than $30 billion in new AI cloud contracts during the first quarter, pushing remaining performance obligations up 4% quarter over quarter to $664 billion.
That figure surpassed the analyst average estimate of $618 billion, underscoring the scale of enterprise commitment to Oracle’s AI infrastructure platform.
Since the end of the fourth fiscal quarter of 2026, Oracle delivered more than 300,000 GPUs to its AI cloud customers, with delivery capacity running nearly three times that of the prior quarter.
Oracle co-CEO Clay Magouyrk said: “We are delivering data centers and GPU capacity at a pace that would have seemed impossible just a year ago.”
For the fiscal second quarter, Oracle forecast adjusted earnings per share of $1.85 to $1.93 alongside total revenue growth of 30% to 34%.
Looking further ahead, the company raised its full-year fiscal 2027 revenue outlook to a minimum of $90 billion, paired with adjusted earnings guidance of $8.10 per share.
Despite the strong results, Oracle’s stock has faced pressure this year from investor concerns over its rapidly rising capital expenditure and the toll it has taken on free cash flow.
In July, S&P Global downgraded Oracle’s credit rating, citing weak cash flow and growing business risk as the company accelerates its infrastructure buildout.
Oracle’s capital expenditures for fiscal 2026 totaled $55.7 billion, leaving the company with a cash outflow of $23.7 billion more than it generated over the same period.
The company’s total debt now stands at $125 billion, a figure that will remain under scrutiny as Oracle continues funding its aggressive expansion strategy.
The software segment, which covers Oracle’s legacy on-premises offerings, generated $5.5 billion in revenue during the quarter, a 3% decline as more customers shifted toward cloud-based services.
