Oracle Reports Record Q1 Revenue and Raised Full-Year Outlook Amid Heavy AI Investments
Oracle Corporation (NYSE:ORCL) reported record first-quarter fiscal year 2027 revenue of $19.3 billion, a 30% increase from the prior year, driven by strong performance in cloud infrastructure which saw a 121% rise to $7.4 billion. Non-GAAP earnings per share rose 30% to $1.92 as Oracle continues expanding its AI capabilities with significant investments. The company delivered 850 megawatts of new AI capacity and over 300,000 GPUs in the quarter while capital expenditures reached $28 billion for Q1 alone. Oracle now expects full-year revenue to exceed $90 billion and non-GAAP EPS of at least $8.10 due to growing demand across cloud services and strong conversion from remaining performance obligations. Despite record cash flow from operations, Oracle remains in negative free cash flow with a net outflow of $5 billion for the quarter. The company has not set a timeline for returning to positive free cash flow but noted that projects typically become strong generators shortly after ramping up.
Topics: AI expansion capital expenditures cloud infrastructure revenue growth