Oracle FQ1 Revenue Reaches $19.35 Billion as FY2027 Profit Guidance Rises

Oracle (NYSE:ORCL) reported fiscal first-quarter 2027 revenue and adjusted earnings above analyst estimates and raised its full-year adjusted earnings guidance. Shares rose about 7% in premarket trading on Friday.

The company reported adjusted earnings of $1.92 per share on revenue of $19.35 billion. Analysts had expected adjusted earnings of $1.73 per share and revenue of $19.13 billion.

Oracle has been expanding its cloud computing infrastructure operations to support artificial intelligence workloads alongside its database software and enterprise applications businesses.

“Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply,” Oracle said in a statement.

The company booked more than $30 billion of additional AI cloud contracts during the quarter, increasing remaining performance obligations, representing contracted future revenue that has not yet been recognised, to $664 billion.

Oracle Says New Contracts Do Not Change Capital-Raising Plans

Oracle has been increasing investment in data centres as it expands Oracle Cloud Infrastructure. The source also noted scrutiny of the company’s debt financing, backlog conversion and negative free cash flow.

“Based on the structuring of those new contracts, the Company confirms there is no incremental impact on its plans to raise capital,” Oracle said.

In June, the company forecast capital expenditure of up to $95 billion for fiscal 2027. Free cash flow was negative for a sixth consecutive quarter.

For its fiscal second quarter, Oracle expects adjusted earnings per share of $1.83 to $1.91 on a constant-currency basis, with revenue growth of between 30% and 34%. Analysts had forecast earnings of $1.89 per share.

Oracle Raises Full-Year Adjusted EPS Forecast to $8.10

For fiscal 2027, Oracle now expects adjusted earnings of $8.10 per share and revenue of at least $90 billion.

Its previous forecast called for adjusted earnings of $8.05 per share and revenue of $90 billion.

Citi analysts said Oracle “delivered a solid FQ1 that checked nearly every box and reinforces the bull case heading into Investor Day,” which is scheduled for October 28 in Las Vegas.

“While the FY27 outlook update was modest, with the $90B revenue target largely reiterated and EPS guidance raised only $0.05 to $8.10, we continue to view management’s framework as conservative. Given the magnitude of FQ1 outperformance, we see a favorable setup for upward revisions at Investor Day and AI World,” they wrote.

These comments represent Citi’s assessment of Oracle’s results and outlook.

AI Infrastructure Spending Remains in Focus

Oracle’s results come after volatility in shares associated with the artificial intelligence sector. Semiconductor stocks rallied during April, May and June before falling more than 20% in July, according to the source, as investors assessed spending and potential returns from AI infrastructure investment.

Sentiment towards the sector recovered to some extent in August following quarterly results and guidance from Nvidia.

More recently, renewed military activity between the US and Iran and volatility in global bond markets amid uncertainty over interest rates have also affected broader market conditions.

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