Oracle (ORCL) reported revenue of $19.3 billion for its fiscal first quarter of 2027, the three months ended August 31, 2026, up 30% from a year earlier, as cloud infrastructure revenue more than doubled to $7.4 billion [1]. Its remaining performance obligations (RPO), contracted revenue not yet recognized, rose $209 billion over the year to $664 billion [1]. Capital spending reached $28.5 billion in the quarter, so free cash flow was negative $5 billion, and Oracle sold $20 billion of new shares to help pay for its data center buildout [1].
What did Oracle report for fiscal Q1 2027?
| Fiscal Q1 2027 (quarter ended Aug 31, 2026) | Result | Change from a year earlier |
|---|---|---|
| Total revenue | $19.3 billion | +30% |
| Cloud revenue (infrastructure plus applications) | $11.6 billion | +62% |
| Cloud infrastructure (IaaS) | $7.4 billion | +121% |
| Cloud applications (SaaS) | $4.2 billion | +10% |
| Software (license and support) | $5.5 billion | -3% |
| GAAP operating income | $6.7 billion | +57% |
| GAAP earnings per share | $1.56 | +55% |
| Non-GAAP earnings per share | $1.92 | +30% |
| Operating cash flow | $23 billion | +184% |
| Capital expenditures | $28.5 billion | n/a |
| Remaining performance obligations | $664 billion | +$209 billion |
Source: Oracle fiscal Q1 2027 results filed with the SEC on September 10, 2026 [1]. Non-GAAP figures exclude items such as stock-based compensation and amortization of intangible assets, as defined by Oracle.
Services revenue was $1.4 billion, up 5%, and hardware $0.8 billion, up 15% [1]. The decline in software revenue reflects customers moving from on-premises licenses to Oracle's cloud, the company said [1].
Why is Oracle's cloud infrastructure growing so fast?
Oracle has become one of the main providers of computing capacity for training and running large AI models. It said "customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply" [1]. In the quarter, Oracle delivered 850 megawatts of additional data center capacity and more than 300,000 graphics processing units (GPUs) to AI customers since the end of the prior quarter, almost three times the capacity it delivered in the fourth quarter of fiscal 2026 [1].
The backlog is the key number. Oracle booked more than $30 billion of additional AI cloud contracts in the quarter, raising RPO to $664 billion [1]. RPO is revenue customers have committed to pay under signed contracts; Oracle will recognize it over several years as it delivers capacity. For comparison, Oracle's revenue in the quarter was $19.3 billion, so the backlog equals more than eight years of revenue at the current quarterly pace [1].
How has Oracle's revenue grown over the past year?
DataPorium financial data show the acceleration quarter by quarter. Oracle's revenue was $14.93 billion in the quarter ended August 31, 2025, then $16.06 billion, $17.19 billion, $19.18 billion and $19.35 billion in the four quarters that followed [2]. Operating income rose from $4.69 billion to $6.82 billion over the same period, and net income from $2.93 billion to $4.76 billion [2]. The quarter ended November 30, 2025 included the one-time gain from the sale of Oracle's stake in chip designer Ampere, which lifted net income that quarter to $6.14 billion [1][2].
Growth from the fourth quarter of fiscal 2026 to the first quarter of fiscal 2027 was small, about 1% [2]. Oracle's sales vary by season, so the year-over-year comparison of 30% is the better measure of the trend [1].
How is Oracle paying for its AI buildout?
Building data centers takes cash before the revenue arrives. Oracle's capital expenditures were $28.5 billion in the quarter, more than its operating cash flow of $23 billion, leaving free cash flow of about negative $5 billion [1]. To fund the gap, Oracle sold $20 billion of common stock through an at-the-market program during the quarter, part of a previously announced capital plan [1]. It said the structure of its new contracts did not add to its plans to raise capital [1].
Oracle also carries substantial debt. Its balance sheet showed $7.6 billion of current and $117.7 billion of non-current notes payable and other borrowings on August 31, 2026, and total assets of $303.3 billion, up from $261.8 billion three months earlier [1]. With the 10-year Treasury yield above 5% in September and early October 2026, DataPorium data show, the cost of new long-term borrowing has risen [3]. Oracle kept its quarterly dividend at $0.50 a share [1].
The trade-off between growth and cash is the central question for the stock, and is part of a wider debate about AI capital spending that a DataPorium article examined earlier this year [4].
What is Oracle's outlook?
For fiscal Q2 2027, the quarter ending November 30, 2026, Oracle expects total revenue growth of 30% to 34% and cloud revenue growth of 65% to 71% in US dollars [1]. It expects non-GAAP earnings per share of $1.85 to $1.93 in dollars, which it said is 21% to 25% growth excluding a one-time gain from the sale of its stake in Ampere in the year-earlier quarter [1]. For the full fiscal year 2027, Oracle expects revenue of at least $90 billion and non-GAAP EPS of $8.10 [1].
How has Oracle stock performed?
Oracle released its results after the market closed on September 10. DataPorium data show the stock closed at $152.94 that day and $150.28 on September 11, a 1.7% decline after the report [2]. It ended September at $137.30 and closed at $141.40 on October 9 [2]. The shares were down 29.6% for 2026 through September, from $194.91 at the end of 2025, and well below the 12-month high close of $313.00 on October 16, 2025 [2].
| Date | ORCL close |
|---|---|
| October 16, 2025 (12-month high) | $313.00 |
| December 31, 2025 | $194.91 |
| June 30, 2026 | $146.55 |
| September 11, 2026 (day after results) | $150.28 |
| September 30, 2026 | $137.30 |
Source: DataPorium Oracle stock page, daily closing prices [2].
Oracle's fiscal Q1 2027 revenue rose 30% to $19.3 billion and its contract backlog reached $664 billion, but $28.5 billion of capital spending left free cash flow at about negative $5 billion.
Frequently asked questions
How much revenue did Oracle report for fiscal Q1 2027?
Oracle reported total revenue of $19.3 billion for the quarter ended August 31, 2026, up 30% from a year earlier [1].
What is Oracle's RPO?
Oracle's remaining performance obligations, revenue under signed contracts not yet recognized, were $664 billion at the end of fiscal Q1 2027, up $209 billion from a year earlier [1].
Why is Oracle's free cash flow negative?
Oracle spent $28.5 billion on capital expenditures, mainly AI data centers, in the quarter, more than its $23 billion of operating cash flow [1].
What is Oracle's guidance for fiscal 2027?
Oracle expects fiscal 2027 total revenue of at least $90 billion and non-GAAP earnings per share of $8.10 [1].
Sources & References
- [1] Oracle, Oracle Announces Q1 Results (Form 8-K exhibit 99.1, September 10, 2026)
- [2] DataPorium Oracle (ORCL) stock page (prices and financial statements)
- [3] DataPorium Interest Rates (Treasury yields)
- [4] DataPorium article, AI capital spending in 2026: what big tech capex means for chip and utility stocks
