Oracle Reports Strong FQ1 Revenue of $19.35 Billion, Raises FY2027 Earnings Guidance
Oracle reported fiscal first-quarter revenue of $19.35 billion and adjusted earnings per share (EPS) of $1.92, both exceeding analyst expectations. The company raised its full-year adjusted EPS guidance to $8.10 from $8.05 while maintaining a minimum revenue target of $90 billion for fiscal 2027. Oracle attributed strong performance in AI cloud services and enterprise applications as key drivers behind the results. Oracle also noted over $30 billion in new AI cloud contracts, pushing remaining performance obligations to $664 billion. Despite this growth, free cash flow remained negative for a sixth consecutive quarter due to heavy capital expenditures on data centers. The company confirmed no changes to its plans for raising additional capital despite the increased backlog. Analysts from Citi praised Oracle’s results as solid and noted that while guidance updates were modest, they reinforced confidence in management's conservative approach. Market conditions remain influenced by AI sector volatility and broader macroeconomic factors.
Tickers: $ORCL
Topics: AI services capital expenditures cloud computing free cash flow