Oracle's cloud infrastructure revenue rose 121% as free cash flow turned negative
Oracle's fiscal first-quarter revenue rose 30 per cent to 19.3 billion dollars, while cloud infrastructure revenue jumped 121 per cent to 7.4 billion dollars. The company spent 28.5 billion dollars on capital investment against roughly 23 billion dollars of operating cash flow, pushing free cash flow about 5 billion dollars negative. Contracted work not yet recognized as revenue reached 664 billion dollars.
Economics & Markets··Morning
Cloud growth accelerated
Oracle increased total revenue 30 per cent from a year earlier to 19.3 billion dollars in the first quarter of fiscal 2027, which ended on 31 August. Cloud infrastructure revenue rose 121 per cent to 7.4 billion dollars, and total cloud revenue climbed 62 per cent to 11.6 billion dollars. Cloud applications grew 10 per cent while legacy software revenue declined 3 per cent. Quartz reported adjusted earnings of 1.92 dollars a share and said the results exceeded analysts' expectations.[1], [2]
Investment outran cash generation
That growth arrived alongside a large capacity outlay. Oracle spent 28.5 billion dollars on capital investment during the quarter; operating cash flow was about 23 billion dollars and free cash flow turned roughly 5 billion dollars negative. Quartz gave the more precise figures as 23.1 billion dollars of operating cash flow and negative 5.4 billion dollars of free cash flow. Oracle said it brought 850 megawatts of additional data-centre capacity online and delivered more than 300,000 graphics processing units to AI cloud customers during the period.[1], [2]
Contracted work reached 664 billion dollars
Remaining performance obligations, a measure of contracted work not yet recognized as revenue, reached 664 billion dollars, up 209 billion dollars from a year earlier. Oracle said it signed more than 30 billion dollars of new AI cloud contracts during the quarter. The company set its fiscal 2027 revenue outlook at a minimum of 90 billion dollars and projected adjusted earnings of 8.10 dollars a share. For the fiscal second quarter, it expects total revenue growth of 30 per cent to 34 per cent.[1], [2]
Related columns
For more information on this topic, you can read the related columns.
