Oracle Reports Strong Q1 FY27 Earnings with $19.3B Revenue and $664B in Backlog

Oracle has announced impressive results for its fiscal first quarter of 2027, reporting total revenue of $19.3 billion, marking a 30% increase compared to the same period last year. This figure surpassed Wall Street expectations of approximately $19.14 billion.

A key highlight of the report is Oracle's remaining performance obligations, which surged to $664 billion, an increase of $209 billion year-over-year. This figure represents the total value of contracts that customers have committed to but have not yet paid for.

Cloud Performance

The company's cloud business was a significant contributor to its success, generating $11.6 billion in revenue, a 62% rise from the previous year. Within this segment, cloud infrastructure services stood out with a remarkable 121% growth, reaching $7.4 billion.

Oracle also secured over $30 billion in new AI cloud contracts during the quarter, highlighting its strong position in the AI market. Despite the positive revenue growth, Oracle reported a negative free cash flow of $5.4 billion, primarily due to capital expenditures of $28.5 billion aimed at data center expansion.

Future Outlook

In light of these results, Oracle has raised its full-year fiscal 2027 revenue guidance to at least $90 billion, suggesting a growth rate of approximately 34%. The company also projects non-GAAP earnings per share of $8.10 for the fiscal year.

With Oracle's significant investments in cloud infrastructure, including the deployment of over 300,000 GPUs and the addition of 850 megawatts of new data center capacity, the company is positioned to influence the broader AI supply chain, potentially impacting competitors like Nvidia and major cloud providers.

Latest Updates on Oracle's Q1 FY27 Earnings

• Oracle reported total revenue of $19.35 billion for Q1 FY27, a 30% increase year-over-year.
• The company’s adjusted earnings per share (EPS) was $1.92, exceeding expectations of $1.74.
• Cloud infrastructure revenue surged by 121% year-over-year to $7.4 billion.
• Total cloud revenue reached $11.6 billion, marking a 62% annual increase.
• Oracle signed over $30 billion in new AI cloud contracts during the quarter.
• The company’s remaining performance obligations totaled $664 billion, surpassing analyst estimates of $639.89 billion.
• Management raised full-year fiscal 2027 revenue guidance to a minimum of $90 billion, with adjusted EPS guidance set at $8.10.
• Oracle shares rose between 5.5% and 7.6% in premarket trading following the earnings report.