REDWOOD CITY — Oracle reported total first-quarter fiscal 2027 revenue of $19.35 billion on September 10, 2026. The company's total first-quarter fiscal 2027 revenue represented a 30% year-over-year increase.

Cloud infrastructure revenue grew 121% to $7.388 billion in the first quarter of fiscal 2027. Oracle booked more than $30 billion in new AI cloud contracts in the first quarter of fiscal 2027. The company's remaining performance obligations reached $664 billion.

E-commerce retailer Temu signed a major cloud deal with Oracle after Microsoft could not supply required capacity in preferred regions. Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply, the company stated in its earnings release. Clay Magouyrk emphasized that demand for Oracle's AI Cloud Training and Inferencing Services continues to outpace supply, with customers struggling to keep up with the pace of AI development.

Clay Magouyrk, CEO of Oracle Cloud Infrastructure, previously worked at Amazon Web Services (AWS) for six years before joining Oracle in 2014. Magouyrk stated that new AI cloud contracts were largely structured via prepay or bring-your-own-hardware mechanisms, reducing Oracle’s cash capital expenditure requirements. Magouyrk stated that new contracts arrived via customer prepay or bring-your-own-hardware mechanisms.

"I didn't say, and I don't think myself nor Hilary said that it doesn't require additional CapEx. We said it doesn't require additional cash from Oracle," Clay Magouyrk, Executive Vice President, said. Customer prepayments helped offset about $11.36 billion of Oracle's quarterly capital spending. Hilary Maxson stated that prepaid and customer-supplied GPU arrangements enable Oracle to have a lower cash capital expenditure requirement.

Oracle's capital expenditures were $28.499 billion in the first quarter of fiscal 2027. Oracle's free cash flow was negative $5.396 billion in the first quarter of fiscal 2027. Oracle's interest expense reached $1.438 billion in the first quarter of fiscal 2027.

Oracle's long-term debt is $122.342 billion. Oracle expects full-year capital expenditures of $90 billion to $95 billion in fiscal 2027 and fiscal 2028.

Oracle expects to raise approximately $40 billion in debt and equity financing in fiscal 2027. Oracle expects fiscal 2027 total revenue to be at least $90 billion. Oracle expects non-GAAP earnings per share of $8.10 for fiscal 2027. Oracle expects second-quarter fiscal 2027 cloud revenue growth between 64% and 70%.

Oracle's net income reached $4.7 billion in the first quarter of fiscal 2027. Oracle's adjusted earnings per share rose to $1.92 in the first quarter of fiscal 2027. Citi analysts reiterated their Buy rating on Oracle stock.

Why It Matters

Oracle's remaining performance obligations rose from $30 billion to $664 billion, representing a 2113.3% increase. The company's free cash flow swung from $4.70 billion to a $5.396 billion loss. This shift occurred as capital expenditures reached $28.499 billion in the quarter.

The events described span 14 years, from 2014 to 2028. Oracle's adjusted earnings per share moved from $1.92, while full-year guidance targets $8.10. The company faces questions on how it will manage the cash flow impact of $90 billion to $95 billion in expected capital expenditures.

Timeline

On June 10, 2026, Oracle's multicloud revenue increased 404% year-over-year in the fourth quarter of fiscal 2026. On September 10, 2026, the company stated in its earnings release, "Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply." Also on September 10, 2026, Clay Magouyrk stated, "I didn't say, and I don't think myself nor Hilary said that it doesn't require additional CapEx. We said it doesn't require additional cash from Oracle." Oracle's GPU utilization rate was 97.9% in the first quarter of fiscal 2027 on that same date.

Hilary Maxson stated that prepaid and customer-supplied GPU arrangements enable Oracle to have a lower cash capital expenditure requirement on September 10, 2026. Oracle's total first-quarter fiscal 2027 revenue represented a 30% year-over-year increase on September 10, 2026.

What's New

Oracle's GPU utilization rate was 97.9% in the first quarter of fiscal 2027, with GPUs up for renewal resold at a 20% premium to prior contracts. Oracle's Q1 FY27 non-GAAP earnings per share increased 30% to $1.92, as reported in the earnings call transcript from Oracle.

In the first quarter of fiscal 2027, Oracle delivered 850 megawatts of AI capacity, including 300,000 GPUs, which is nearly three times the volume delivered in all of fiscal 2026. Oracle's total first-quarter fiscal 2027 revenue represented a 30% year-over-year increase.

How Sources Differ

Regarding figure conflicts involving Oracle, the Oracle Q1 Fiscal 2027 Earnings Report stated that Oracle's GPU utilization rate was 97.9% in the first quarter of fiscal 2027. The Oracle Q1 Fiscal 2027 Earnings Guidance stated that Oracle expects second-quarter fiscal 2027 revenue growth between 30% and 34%. Another conflict shows the Oracle Q1 Fiscal 2027 Earnings Report stating that Oracle's GPU utilization rate was 97.9% in the first quarter of fiscal 2027, while the Oracle Q1 Fiscal 2027 Earnings Guidance stated that Oracle expects second-quarter fiscal 2027 cloud revenue growth between 64% and 70%.

A further conflict involves the Oracle Q1 Fiscal 2027 Earnings Report stating that Oracle's GPU utilization rate was 97.9% in the first quarter of fiscal 2027, whereas the Oracle Q4 Fiscal 2026 Earnings Report stated that Oracle's multicloud revenue increased 404% year-over-year in the fourth quarter of fiscal 2026. Regarding detail gaps for quarter fiscal, the Oracle Q1 Fiscal 2027 Earnings Report stated that Oracle reported total first-quarter fiscal 2027 revenue of $19.35 billion, while the Oracle Q1 Fiscal 2027 Earnings Guidance stated that Oracle expects second-quarter fiscal 2027 revenue growth between 30% and 34%. Another detail g the Oracle Q1 Fiscal 2027 Earnings Report stating that Oracle reported total first-quarter fiscal 2027 revenue of $19.35 billion, while the Oracle Q1 Fiscal 2027 Earnings Guidance stated that Oracle expects second-quarter fiscal 2027 cloud revenue growth between 64% and 70%.

A final detail gap involves Oracle, where the Oracle Q1 Fiscal 2027 Earnings Report stated that Oracle reported total first-quarter fiscal 2027 revenue of $19.35 billion, while the Oracle Q4 Fiscal 2026 Earnings Report stated that Oracle's multicloud revenue increased 404% year-over-year in the fourth quarter of fiscal 2026.