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Oracle just posted a quarter that would make most enterprise software companies blush. The company reported $19.3 billion in total revenue for its fiscal first quarter of 2027, a 30% jump year-over-year that topped Wall Street expectations of roughly $19.13 billion.
The real headline, though, is the backlog. Oracle’s remaining performance obligations, essentially the total value of contracts customers have committed to but haven’t paid for yet, ballooned to $664 billion. That’s up $209 billion from the same period last year.
Cloud infrastructure is the engine
Oracle’s cloud business did the heavy lifting this quarter, generating $11.6 billion in revenue, a 62% increase over the prior year. Within that, cloud infrastructure services were the standout performer, surging 121% to $7.4 billion.
Cloud applications, the more mature and slower-growing segment, added $4.2 billion, up 10%.
The company booked more than $30 billion in new AI cloud contracts during the quarter alone. Capital expenditures hit $28.5 billion for the quarter, a pace that, if sustained, would put annual capex north of $100 billion.
Oracle reported negative free cash flow of $5.4 billion, a deficit it partially covered through a $20 billion equity sale.
GPUs running near full capacity
Oracle delivered 850 megawatts of new datacenter capacity during the quarter and deployed more than 300,000 GPUs. GPU utilization hit 97.9%.
On the earnings call, the numbers translated to non-GAAP earnings per share of $1.92, up 30% year-over-year. GAAP EPS came in at $1.56, representing a 55% increase.
Oracle raised its full-year FY2027 revenue guidance to at least $90 billion, paired with a non-GAAP EPS estimate of $8.10. For next quarter specifically, the company guided cloud revenue growth of 65% to 71%.
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