Key facts
- Oracle's total revenue rose 30% to $19.3 billion in its first fiscal quarter.
- The company expects adjusted earnings per share of $8.10 for fiscal 2027.
- Oracle forecasts revenue of at least $90 billion for fiscal 2027.
- The company brought 850 megawatts of capacity online in the June-August quarter.
- Oracle's revenue backlog stood at $664 billion at the end of the quarter.
Oracle Inc. exceeded Wall Street's revenue expectations for its first fiscal quarter, driven by strong demand for its cloud computing services, which are benefiting from increased enterprise spending on artificial intelligence. The company also raised its annual profit forecast, signaling confidence in its growth trajectory.
Despite a challenging year for its stock, which had fallen more than 20% prior to the report, Oracle shares rose nearly 8% in extended trading following the announcement. The company's significant investments in data centers appear to be yielding positive results, contributing to its ability to secure more enterprise contracts.
Oracle's financial performance has been under scrutiny due to high capital expenditures pressuring free cash flow, leading S&P Global to downgrade its credit rating in July. However, analysts anticipate a sharp acceleration in revenue as Oracle expands its data center capacity, having brought 850 megawatts online in the June-August quarter. The company's revenue backlog reached $664 billion at the end of the quarter, an increase from the previous three months and above analysts' estimates.