Oracle’s stock moved higher in extended trading on Thursday following the release of stronger-than-anticipated quarterly results. The software vendor reported fiscal first-quarter revenue growth of nearly 30% year over year for the period ended 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.
Cloud-related operations drove much of the company’s expansion, with total cloud revenue rising 62% to $11.61 billion, exceeding analyst consensus of $11.51 billion. Cloud infrastructure revenue more than doubled to $7.4 billion, surpassing the $7.09 billion consensus estimate. The company’s software division generated $5.55 billion in revenue, representing a decline of approximately 3% from year-ago levels and falling short of the $5.61 billion consensus.
Looking ahead, Oracle provided guidance for the fiscal second quarter of $1.85 to $1.93 in adjusted earnings per share, with anticipated revenue growth between 30% and 34%. For fiscal 2027, the company projected adjusted earnings per share of $8.10 on at least $90 billion in revenue. The company maintained unchanged capital spending guidance for the full year.
Oraclementation of its cloud expansion strategy required substantial investment, with capital expenditures in the fiscal first quarter reaching $28.50 billion compared with $8.50 billion in the prior year. During the quarter, the company delivered 850 megawatts of data center capacity. However, the company’s financial position reflected the costs of this buildout, with negative free cash flow of $5.4 billion versus negative $362 million a year earlier, and total debt reaching $125 billion.
The company closed more than $30 billion in additional artificial intelligence contracts during the quarter and announced new AI agents for human resources teams. Oracle also secured a Pentagon contract potentially worth up to $7 billion over a decade. Management addressed previous concerns about potential delays in data center development, with executives stating they had no indication that New Mexico or other sites were behind schedule.
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