Oracle delivered financial results showing 30% revenue growth for the fiscal first quarter, with total revenue reaching $19.35 billion, surpassing LSEG consensus estimates of $19.14 billion. Net income increased substantially, climbing 60% to $4.7 billion compared to $2.93 billion in the comparable prior-year period.
Cloud revenue demonstrated particularly strong performance, rising 62% year-over-year to $11.6 billion. Cloud infrastructure revenue surged 121%, while cloud application revenue grew 10%. The company added 850 megawatts of data center capacity during the quarter and secured over $30 billion in additional AI cloud contracts. Oracle also deployed more than 300,000 graphics processing units to customers utilizing its AI Cloud services.
Looking ahead, Oracle provided guidance indicating second-quarter revenue growth between 30% and 34%, with cloud revenue expected to increase between 64% and 70%. The company projected total revenue for fiscal 2027 of at least $90 billion. This expansion is being funded by a substantial debt position of $125 billion, which the company has accumulated to support its data center buildout for artificial intelligence workloads. Notable customers benefiting from this infrastructure investment include Nvidia, Meta, OpenAI, Advanced Micro Devices, and SpaceX’s AI division.
Despite strong quarterly results, Oracle shares experienced volatility in trading, initially rising following the open before closing nearly 2% lower. The stock has declined approximately 20% this year amid investor concerns regarding the company’s elevated debt levels. Negative free cash flow totaled $5.4 billion during the quarter, compared to negative $362 million in the prior year. Citi analysts maintained a buy rating, stating that Oracle had met expectations and set a favorable foundation for its upcoming investor day and AI World event.
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