Published 1h ago2026-09-10 17:03:51

Oracle Tops First-Quarter Expectations as Cloud Infrastructure Revenue More Than Doubles

Oracle's (ORCL) fiscal first-quarter results surpassed Wall Street's estimates as cloud infrastructure sales more than doubled year over year.

Revenue increased 30% year-on-year to $19.35 billion during the three months through August, above the FactSet-polled consensus of $19.14 billion. Adjusted earnings per share rose to $1.92 from $1.47 a year earlier, compared with the Street's $1.74 view.

Cloud sales advanced 62% to $11.61 billion, driven by a 121% jump in infrastructure to $7.39 billion. Wall Street expected $11.51 billion in overall cloud revenue.

Oracle's remaining performance obligations -- future commitments arising from contractual relationships -- soared $209 billion year-on-year to $664 billion. The company booked more than $30 billion of AI cloud contracts in the fiscal first quarter.

"Customer demand for AI cloud training and inferencing services continues to grow faster than supply," the cloud computing company said late Thursday.

Oracle delivered more than 300,000 graphics processing units to AI cloud customers since the end of May, nearly triple the capacity shipped during the fourth quarter.

Shares were up 6.8% in after-hours trading. The stock is down 22% this year through Thursday close.

Oracle's software segment edged 3% lower annually to $5.55 billion.

Earlier in the week, Oppenheimer said strong results across enterprise software companies in the most recent quarter point to healthy demand, which should bode well for Oracle's cloud business.

"Our regression analysis foretells upside in (Oracle cloud infrastructure, or OCI) growth and RPO conversions in (the fiscal first quarter)," the brokerage said in a Tuesday note. "In combination with additional gigawatt capacity coming online, this could support higher (fiscal 2027) guidance while reinforcing the bull case that OCI demand remains supply -- not demand -- constrained."

Major technology companies have reported strong annual growth rates for their cloud businesses in the latest earnings season, with Alphabet's (GOOG, GOOGL) cloud revenue surging 82% to $24.77 billion. Microsoft (MSFT) cloud computing platform Azure rallied 43%, while Amazon's (AMZN) Web Services revenue jumped 37%.

Oracle expects revenue to grow by 30% to 34% in the second quarter, with cloud sales seen rising 64% and 70%. Non-GAAP EPS is expected to grow between 21% and 25%, reaching $1.85 to $1.91. Markets expect adjusted EPS of $1.89 on consolidated revenue growth of 32% to $21.18 billion.

Oracle raised its fiscal 2027 non-GAAP EPS guidance to $8.10 from $8.05. The company expects at least $90 billion in full-year revenue. Analysts expect $8.07 and $89.66 billion, respectively.

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