- Oracle reported record fiscal Q1 2027 revenue of $19.34B, up 30% year-over-year and $215.9M above consensus, with EPS of $1.92 beating the $1.74 estimate.
- Total cloud revenue reached $11.61B, 60% of overall revenue versus 48% a year ago, while Oracle Cloud Infrastructure revenue more than doubled to $7.4B.
- Remaining performance obligations rose 31.5% year-over-year to $664B, the ninth consecutive quarterly increase, with half expected to convert to revenue within three years.
- Oracle delivered 850 MW of additional data center capacity and tripled GPU deliveries to 300,000, while capex climbed to $28.5B from $8.5B a year earlier and free cash flow stayed negative at $5.4B.
- Total debt exceeded $156B with interest expense up 55% to $1.4B, and Oracle launched a $20B at-the-market equity program to fund growth.
- Q2 FY 2027 revenue guidance is 30%-34% growth with EPS of $1.85-$1.93, and the stock trades at a forward P/E of 18.46 versus a sector median of 22.46.
Quotes
“In Q1, Oracle reported record revenues of $19.34 billion, up 30% from the previous year and exceeding the Street's expectations by $215.9 million.”
“Remaining performance obligations (RPO) — a key indicator of future demand — continued to rise, increasing by 31.5% on a YoY basis to $664 billion.”
“Meanwhile, Oracle raised its EPS guidance for the full year to $8.10 from the $8.05 guided earlier in Q4 FY 2026.”
“Yet, the risks of rising debt and negative free cash flow can pose serious concerns for the company if there are any signs of a demand slowdown for AI infrastructure.”