Oracle Corporation shares rose Friday after the company announced strong Q1 FY27 results, with revenue growth that topped Wall Street estimates, including triple-digit growth in cloud infrastructure revenues.
Total quarterly revenues increased 30% to $19.3 billion, reflecting strong execution in our infrastructure business, with the delivery of 850MW additional datacenter capacity.
Oracle booked more than $30 billion of additional AI cloud contracts in Q1 increasing its RPO to $664 billion. Since the end of Q4, Oracle also delivered more than 300,000 GPUs to its AI Cloud customers and almost triple the capacity delivered in Q4 FY26.
Cloud revenues (IaaS + SaaS) increased 62% to $11.6 billion, driven by 121% growth in Cloud Infrastructure (IaaS), and 10% growth in Cloud Applications (SaaS).
Software revenues were down 3% to $5.5 billion, reflecting our customers’ continuing migration from on-premises software to the Cloud.
Services revenues were $1.4 billion, up 5%, and Hardware revenues were $0.8 billion, up 15%.
Oracle’s strong operating income translated to a record Q1 operating cash flow of $23 billion, up 184%. Free cash flow was negative $5 billion for Q1 as Oracle continued to execute on investments to support the growth of its Cloud Infrastructure business.
“The vast majority of those orders were via prepay or bring-your-own-hardware or a similar mechanic, so they don’t require incremental capital from Oracle,” CFO, Hilary Maxson, told reporters. “And we started to see a strong conversion of our (backlog) into revenues this quarter, driving our cloud infrastructure results.”
Oracle shares, which have slumped more than 21% this year, rose 4% following the announcement.
By CEO NA Editorial Staff
