Oracle reported fiscal first-quarter 2027 results that exceeded analyst expectations, sending its shares 7% higher in after-hours trading after the stock fell 5% during regular market hours.

Revenue reached between $19.3 billion and $19.45 billion, up 30% from the same quarter a year earlier and above analyst estimates of approximately $19.13 billion. Adjusted earnings per share came in at $1.92, also beating expectations.

The company’s quarterly results were highlighted by more than $30 billion in new artificial intelligence cloud contracts signed during the period.

Cloud infrastructure drives growth

Oracle’s total cloud revenue increased 62% year over year to $11.6 billion. Revenue from infrastructure-as-a-service (IaaS) reached $7.4 billion, representing 121% growth. The company also delivered 850 megawatts of new data center capacity during the quarter.

The newly signed contracts increased Oracle’s remaining performance obligations to $664 billion, a $209 billion increase from the previous quarter. Remaining performance obligations represent contracted revenue that has not yet been recognized, making the pace at which Oracle delivers capacity and records that revenue an important operating consideration.

Oracle raises fiscal 2027 guidance

Oracle raised its fiscal 2027 full-year revenue guidance to at least $90 billion and forecast adjusted earnings per share of $8.10. For the second quarter, the company expects adjusted EPS to range from $1.85 to $1.93.

Oracle reported negative free cash flow for the quarter, reflecting the scale of its spending on AI infrastructure. The company told investors that the new AI contracts would not require changes to its capital-raising strategy in the near term. The combination of expanding data-center capacity, converting contracts into reported revenue, and managing infrastructure spending will remain central to how the company executes against its higher guidance.

Source: CryptoBriefing. Related market page: Oracle.