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Oracle's quarterly revenue beats estimates as AI boom drives cloud demand
Cloud revenue rose 62% to $11.6 billion, and Oracle said new AI contracts will not change its capital plans.
- 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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6 Articles
6 Articles
Oracle's quarterly revenue beats estimates as AI boom drives cloud demand
Oracle topped Wall Street expectations for first-quarter revenue on Thursday and lifted its annual profit forecast, boosted by strong demand for its cloud computing services from surging enterprise spending on AI.
·London, United Kingdom
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Total News Sources6
Leaning Left1Leaning Right0Center4Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
L 20%
C 80%
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