Oracle Surges 7% After Hours as Q1 Cloud Infrastructure Revenue More Than Doubles and AI Backlog Hits $664 Billion

Oracle reported fiscal first-quarter 2027 results after the closing bell on September 10 that beat Wall Street expectations on both revenue and earnings, sending shares up roughly 7% in after-hours trading. Total revenue came in at $19.35 billion, up 30% year over year and ahead of the $19.13 billion consensus estimate. Adjusted EPS of $1.92 beat the $1.74 estimate by $0.18, also representing 30% year-over-year growth.

Cloud revenue was the standout, rising 62% to $11.6 billion and topping estimates of roughly $11.44 billion. Cloud infrastructure revenue, Oracle's IaaS segment, surged 121% year over year to $7.39 billion, well above the $7.19 billion consensus, extending a streak of triple-digit growth that has made Oracle one of the most direct public-market proxies for the AI infrastructure buildout. Cloud applications revenue grew 10% to $4.2 billion, while the legacy software unit slipped 3% to $5.55 billion, below the $5.67 billion estimate.

Oracle booked more than $30 billion in additional AI cloud contracts during the quarter, pushing its remaining performance obligations, a measure of contracted future revenue, to $664 billion, a $209 billion increase year over year and well above the StreetAccount consensus of $630.6 billion. The company also delivered more than 300,000 GPUs to AI cloud customers since the end of Q4, nearly tripling the GPU capacity delivered in Q4 FY2026, and added 850 megawatts of data center capacity in the single quarter.

Capital expenditure surged to $28.5 billion in Q1 FY2027, more than tripling from $8.5 billion in Q1 FY2026 and up from $16.5 billion in Q4 FY2026. Operating cash flow reached $23.1 billion, up 184% year over year, but free cash flow was negative $5.4 billion given the heavy spending. Oracle also disclosed it sold $20 billion of common stock through an at-the-market equity program ahead of the report, and confirmed there is no incremental impact on its plans to raise additional capital, a point the market had been watching closely given that long-term debt has climbed from $72 billion in May 2022 to $122 billion.

For the full fiscal year 2027, Oracle guided for revenue of at least $90 billion, slightly above the $89.79 billion consensus, and adjusted EPS of $8.10, above the $8.07 estimate. For the second quarter, the company projected revenue growth of 30% to 34% and cloud revenue growth of 65% to 71% in dollar terms. The stock entered the session down roughly 18% year to date, with options markets pricing in a potential swing of about 11% in either direction around the print. Bank of America had modeled IaaS growth of 116% and total revenue growth of 28% heading into the report, and Jefferies characterized Oracle as one of the top infrastructure builders of the current cloud era.