Oracle posted fiscal first-quarter revenue of $19.35 billion, surpassing LSEG consensus estimates of $19.14 billion, with net income rising 60% to $4.7 billion compared to $2.93 billion in the prior year. Cloud revenue climbed 62% from the year-earlier period to $11.6 billion, with cloud infrastructure revenue surging 121% while cloud application revenue expanded 10%. The software company’s stock initially gained following the earnings announcement but ultimately closed nearly 2% lower on the session.
The company’s artificial intelligence infrastructure investments continued to accelerate, with Oracle deploying an additional 850 megawatts of data center capacity during the quarter and securing over $30 billion in new AI cloud contracts. The company also delivered more than 300,000 graphics processing units to customers in its AI Cloud segment. The expansive capacity buildout is being funded by customers including Nvidia, Meta, OpenAI, Advanced Micro Devices, and SpaceX’s AI business.
Oracle issued guidance for second-quarter revenue growth in the range of 30% to 34%, with cloud revenue projected to rise between 64% and 70%. The company forecast total revenue for fiscal 2027 to reach at least $90 billion. However, the company reported $5.4 billion in negative free cash flow during the quarter, compared to negative $362 million in the year-earlier period.
The company’s debt burden has become a focal point for investors, with Oracle now carrying $125 billion in total debt as it funds its ambitious data center expansion. Year-to-date, Oracle shares have declined approximately 20% amid investor concerns about the magnitude of the debt taken on to support infrastructure buildout. Analysts at Citi maintained a buy rating on the stock, stating that Oracle had met expectations and positioned itself favorably heading into an upcoming investor day event.
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