Oracle shares moved higher in extended trading following the release of its fiscal first quarter earnings, which exceeded analyst expectations across several key metrics. The software vendor reported revenue growth of nearly 30% year-over-year for the quarter ended August 31, with net income reaching $4.68 billion, or $1.56 per share, compared with $2.93 billion, or $1.01 per share, in the prior year period.
Cloud operations drove much of the company’s expansion. Cloud revenue climbed 62% to $11.61 billion, surpassing the $11.51 billion consensus estimate among analysts. Cloud infrastructure revenue more than doubled to $7.4 billion, beating the $7.09 billion consensus projection. However, the software category saw revenue decline roughly 3% to $5.55 billion, falling short of the $5.61 billion consensus. The company’s remaining performance obligations, which reflect contracted but unrecognized revenue, reached $664 billion.
Oracle’s expansion strategy centers on data center capacity buildout to capitalize on artificial intelligence opportunities. Capital expenditures in the quarter surged to $28.50 billion from $8.50 billion a year earlier, and the company delivered 850 megawatts of data center capacity. The company reported negative free cash flow of $5.4 billion compared with negative $362 million in the prior year. Total debt stood at $125 billion. During the quarter, Oracle secured more than $30 billion in additional artificial intelligence contracts without requiring capital from the company itself.
Looking ahead, Oracle provided guidance for the fiscal second quarter of $1.85 to $1.93 in adjusted earnings per share with revenue growth between 30% and 34%. For fiscal 2027, the company projects adjusted earnings of $8.10 per share on at least $90 billion in revenue. Year-to-date through the trading day, Oracle shares had declined 22% while the broader S&P 500 gained roughly 11%.
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