Oracle closes first quarter of fiscal 2027 with record revenues of $19,345 billion, up 30% year-over-year, both at current and constant exchange rates. This is a significant acceleration compared to the growth of traditional companies, which was mainly driven by the cloud. cloud revenues have in fact risen by 62% to 11,607 billion, going from 48% to 60% of the total turnover.
The detail highlights the change in the group's mix: Cloud 11,607 billion (+62%)Software $5,550 billion (-3%), Hardware $774 million (+15%), and Services $1,414 billion (+5%). According to Oracle, the decline in traditional software reflects customers' migration from on-premise systems to the cloud.
Cloud infrastructures are the real driving force
Within the cloud, infrastructure is now the main catalyst. Revenue Cloud Infrastructure (IaaS) they jumped from the 121% to $7,4 billion, while Cloud Applications (SaaS) grew by 10% to 4,2 billionIn terms of constant currency growth, IaaS marked +120% and SaaS +10%.
Oracle also delivered 850 MW of new data center capacity in the quarter. Since the end of the fourth quarter it has distributed over 300.000 GPUs to AI customers, nearly three times the capacity delivered in the fourth quarter of fiscal 2026. This data confirms that infrastructure capacity, even more than software, is today the constraint and simultaneously the main driver of growth.
Profits accelerate sharply
Revenue growth also translated into operating results. GAAP operating income rose 57% to $6,728 billion, with a margin of 35%, up from 29% a year earlier. On a non-GAAP basis, operating income increased 31% to $8,151 billion, with a margin of 42%.
GAAP net income grew 63% to $4,760 billion, while net income attributable to common stockholders increased 60% to $4,679 billion. GAAP diluted EPS increased 55% from $1,01 to $1,56; non-GAAP EPS increased 30% from $1,47 to $1,92.
Cost dynamics are also interesting: overall operating expenses increased by 18%, to 12,617 billion, compared to a 30% increase in revenues. Cloud and software spending, however, increased by 77% to 6,4 billion, reflecting the investments needed to support infrastructure expansion.
The backlog reaches 664 billion
The most important figure for visibility on future revenues is the Remaining Performance Obligations (RPO), which rose to 664 billion dollars, up 209 billion compared to a year earlierIn the quarter alone, Oracle signed over $30 billion in new cloud AI contracts. The backlog size is over 34 times quarterly revenueIt's a contracted mass that offers exceptional visibility into demand, but also requires rapidly building physical capacity to turn contracts into revenue.
The price of expansion: $28,5 billion in capex
This is where the main financial element to monitor emerges. In the quarter Oracle has invested $28,499 billion in capital expenditure, compared to 8,502 billion in the same period of the previous financial year: an increase of approximately 20 billion in twelve months.
The result is a negative free cash flow of $5 billion, despite a record operating cash flow of €23,103 billion, compared to €8,140 billion a year earlier. The increase in operating cash flow was also supported by customer prepayments: deferred revenues related to contracts with a significant financial component increased by €11,363 billion.
Balance sheet and capital raising
At the end of August, Oracle had $36,369 billion in liquidity, up from $31,289 billion at the end of May. Total assets rose to $303,259 billion, from $261,759 billion. Financial debt includes $7,625 billion in current liabilities and $117,712 billion in non-current debt, for a total of approximately $125,3 billion. In the quarter Oracle also raised $19,909 billion net through the ATM share issuance program, equal to approximately 20 billion gross announced by the company.
Guidance: at least 90 billion in revenue
For the second quarter Oracle forecasts overall revenue growth of between 30% and 34%, both in dollars and at constant currencies. Cloud is expected to grow 65%-71% in dollars and 64%-70% at constant currencies. Non-GAAP EPS is expected between $1,85 and $1,93. For the full fiscal year 2027, Oracle now expects at least $90 billion in revenue and non-GAAP EPS of $8,10. Investors appear to have appreciated the results: in after-hours trading on Wall Street, Oracle shares immediately soared following the release of the quarterly results, reaching a 7% gain within minutes.
