Oracle delivered fiscal first-quarter revenue of $19.35 billion, surpassing LSEG consensus expectations of $19.14 billion. The technology company’s net income climbed 60% to $4.7 billion compared with $2.93 billion in the prior year, reflecting strong operational performance.
Cloud services drove much of the growth, with cloud revenue rising 62% year-over-year to $11.6 billion. Cloud infrastructure revenue surged 121%, while cloud application revenue grew at a more modest 10%. During the quarter, Oracle added 850 megawatts of data center capacity and secured over $30 billion in additional AI cloud contracts. The company also delivered more than 300,000 graphics processing units to customers utilizing its AI Cloud services.
Looking ahead, Oracle projected second-quarter revenue growth between 30% and 34%, with cloud revenue expected to rise between 64% and 70%. The company guided for total revenue of at least $90 billion in fiscal 2027. However, this aggressive expansion comes with significant financial costs, as Oracle now carries $125 billion in total debt accumulated to fund its expansive artificial intelligence infrastructure buildout. The company posted $5.4 billion in negative free cash flow during the quarter, compared with negative $362 million a year earlier.
Market reaction proved mixed, with Oracle shares initially gaining value before closing nearly 2% lower on the session. Year-to-date, the stock has declined approximately 20% as investors weigh the benefits of its strong AI cloud positioning against concerns regarding the substantial debt levels. Citi analysts maintained a buy rating, citing that Oracle had met expectations and positioned itself favorably for upcoming investor communications.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI