Oracle’s stock moved higher in extended trading following the release of fiscal first-quarter results that exceeded analyst expectations. The software company reported revenue growth of approximately 30% year-over-year for the quarter ending August 31, with net income reaching $4.68 billion, or $1.56 per share, compared to $2.93 billion, or $1.01 per share, in the prior year period.
Cloud services proved to be a significant growth driver for the company. Cloud revenue increased 62% during the quarter to $11.61 billion, surpassing the $11.51 billion consensus estimate. Cloud infrastructure revenue more than doubled to $7.4 billion, exceeding the $7.09 billion analyst consensus. However, software category revenue declined about 3% to $5.55 billion, falling short of the $5.61 billion consensus expectation.
For the upcoming fiscal second quarter, Oracle provided guidance of $1.85 to $1.93 in adjusted earnings per share, with expected revenue growth between 30% and 34%. The company raised full-year fiscal 2027 guidance to $8.10 in adjusted earnings per share on at least $90 billion in revenue, slightly above LSEG consensus expectations of $8.07 per share and $89.76 billion in revenue.
The company’s expansion efforts in data center infrastructure have required substantial capital investment. Capital expenditures reached $28.50 billion during the fiscal first quarter, up from $8.50 billion in the prior year, and the company delivered 850 megawatts of data center capacity. This investment push has resulted in negative free cash flow of $5.4 billion compared to negative $362 million a year earlier, and total debt now stands at $125 billion. Oracle’s remaining performance obligations reached $664 billion at quarter-end, above analyst expectations of $630.6 billion.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI