Oracle shares moved higher following the release of stronger-than-expected quarterly results. The software company reported fiscal first-quarter revenue that grew nearly 30% year over year through August 31, with net income of $4.68 billion, or $1.56 per share, compared with $2.93 billion, or $1.01 per share, in the prior year period.
Cloud infrastructure proved to be a significant growth driver, with revenue more than doubling to $7.4 billion, surpassing the $7.09 billion consensus estimate among analysts. Total cloud revenue reached $11.61 billion, slightly ahead of the $11.51 billion consensus. Software category revenue generated $5.55 billion, declining approximately 3% from the year-ago period and falling short of analyst expectations of $5.61 billion.
Looking ahead, Oracle provided fiscal second-quarter guidance of $1.85 to $1.93 in adjusted earnings per share with revenue growth projected between 30% and 34%. For the 2027 fiscal year, the company forecast $8.10 in adjusted earnings per share on at least $90 billion in revenue, slightly exceeding consensus expectations. Remaining performance obligations totaled $664 billion, above analyst estimates.
The company’s expansion is heavily focused on data center buildout to capture opportunities in artificial intelligence. Capital expenditures surged to $28.50 billion in the quarter from $8.50 billion a year earlier, with the company delivering 850 megawatts of data center capacity. However, Oracle reported negative free cash flow of $5.4 billion compared with negative $362 million in the prior year, and debt stood at $125 billion. Leadership addressed concerns about potential delays at a New Mexico data center facility, stating there was no evidence of schedule disruptions relative to fiscal 2027 guidance.
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