Oracle reported fiscal first-quarter results that exceeded analyst expectations, with the company’s stock climbing 7% in after-hours trading on Thursday. Revenue grew approximately 30% year-over-year in the quarter ending August 31, while net income reached $4.68 billion, or $1.56 per share, compared with $2.93 billion, or $1.01 per share, in the prior-year period.
The company provided guidance for the fiscal second quarter that slightly missed consensus expectations, projecting adjusted earnings between $1.85 and $1.93 per share with revenue growth of 30% to 34%. Analysts surveyed by LSEG had anticipated $1.89 in adjusted earnings per share and $21.20 billion in revenue. For the full 2027 fiscal year, Oracle raised its outlook to $8.10 in adjusted earnings per share on at least $90 billion in revenue, modestly above LSEG consensus forecasts of $8.07 per share and $89.76 billion in revenue.
Cloud infrastructure represented a significant driver of growth, with that segment’s revenue more than doubling to $7.4 billion, surpassing the $7.09 billion consensus estimate. Total cloud revenue jumped 62% to $11.61 billion. Software revenue declined about 3% to $5.55 billion, falling slightly below the $5.61 billion consensus. Capital expenditures surged to $28.50 billion from $8.50 billion a year earlier, reflecting the company’s aggressive expansion of data center capacity, which reached 850 megawatts during the quarter.
Oracle’s expansion is primarily focused on supporting artificial intelligence infrastructure and competing with larger hyperscaler competitors. The company reported remaining performance obligations of $664 billion, exceeding the $630.6 billion consensus. However, Oracle’s balance sheet showed increased leverage, with debt rising to $125 billion and negative free cash flow of $5.4 billion compared with negative $362 million a year earlier. Year-to-date, Oracle shares had declined 22% through Thursday’s close, while the S&P 500 gained approximately 11%.
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