Oracle shares moved higher in extended trading following the release of stronger-than-expected quarterly results for the fiscal first quarter ending August 31. The software vendor’s revenue climbed almost 30% year over year, 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.
Cloud-related revenue demonstrated particularly strong performance, with total cloud revenue surging 62% to $11.61 billion, surpassing analyst consensus of $11.51 billion. Cloud infrastructure revenue more than doubled to $7.4 billion, exceeding the $7.09 billion consensus estimate. Software revenue totaled $5.55 billion, declining roughly 3% and falling short of the $5.61 billion consensus. The company’s performance reflects its strategic push to capitalize on artificial intelligence infrastructure demand through expanded data center operations.
For the fiscal second quarter, Oracle provided guidance of $1.85 to $1.93 in adjusted earnings per share with revenue growth projected between 30% and 34%. Full-year 2027 fiscal guidance called for $8.10 in adjusted earnings per share on at least $90 billion in revenue, slightly above consensus expectations of $8.07 per share and $89.76 billion in revenue. Remaining performance obligations stood at $664 billion, exceeding consensus of $630.6 billion.
Expansion efforts have involved substantial capital investments, with first-quarter capital expenditures reaching $28.50 billion, up from $8.50 billion a year prior. The company delivered 850 megawatts of data center capacity during the quarter. However, these investments contributed to negative free cash flow of $5.4 billion compared with negative $362 million previously, and total debt now stands at $125 billion. Despite reported progress on data center projects, the company faces scrutiny regarding construction timelines for certain facilities.
Year to date through Thursday’s close, Oracle shares had declined 22%, significantly underperforming the S&P 500, which gained roughly 11%.
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