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Oracle's quarterly revenue beats estimates as AI boom drives cloud demand
The software maker said AI-driven cloud demand lifted revenue 30% and cloud infrastructure sales more than doubled.
- Oracle shares jumped 7% in extended trading on Thursday after the software vendor reported adjusted earnings of $1.92 per share and revenue of $19.35 billion, both exceeding analyst expectations.
- Cloud infrastructure revenue more than doubled to $7.4 billion while total cloud revenue soared 62% to $11.6 billion, as Oracle delivered 850 megawatts of data center capacity during the quarter.
- Software revenue fell 3% to $5.5 billion, missing StreetAccount's $5.61 billion consensus, though Oracle secured a Pentagon contract worth up to $7 billion over a decade.
- But Oracle carries $125 billion in debt with negative free cash flow since last year, constraining its financial flexibility despite the earnings beat; shares have dropped 22% this year.
- For fiscal 2027, Oracle projects $8.10 in adjusted earnings per share on at least $90 billion in revenue, while guiding fiscal second-quarter earnings of $1.85 to $1.93 per share.
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Oracle’s AI Spending Is Still Huge, But the Payoff Is Starting to Show in Earnings
Oracle's fiscal Q1 revenue grew nearly 30% with a record $23 billion cash flow and surging backlog, as analysts cite an AI monetization inflection point supporting a Moderate Buy consensus.
·Sioux Falls, United States
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The New York Ledger
The New York LedgerOracle maintains its capex forecast and reports cloud growth, sending shares up 7%
Many major cloud companies have continued raising their AI spending forecasts as they race to build more data centers and expand AI capacity.
·New York, United States
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The rapid growth of the cloud division brings Oracle significant growth in revenue and profit. Despite the high level of debt, investors are responding to the increased forecast.
·Düsseldorf, Germany
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Total News Sources51
Leaning Left2Leaning Right6Center17Last UpdatedBias Distribution68% Center
Bias Distribution
- 68% of the sources are Center
68% Center
C 68%
R 24%
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