Oracle Q1 FY2027: Cloud Infrastructure Revenue Doubles, $90B Guidance Set
As seen on the 24/7 Wall St. homepage on September 10, 2026.
Cloud infrastructure revenue jumped 121% to $7.39 billion, and management now guides full-year FY2027 revenue to at least $90 billion. Capital spending of $28.5 billion pushed free cash flow to negative $5.4 billion.
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Oracle's IaaS revenue grew 121% year over year, evidence that the AI infrastructure buildout is still accelerating rather than plateauing.
Adjusted EPS of $1.92 topped consensus, and revenue came in ahead of expectations. Remaining performance obligations reached $664 billion, with more than $30 billion in new AI cloud contracts booked in the quarter.
Capital spending is the central tension here: $28.5 billion in the quarter pushed free cash flow to negative $5.4 billion. Management now commits to full-year FY2027 revenue of at least $90 billion.
For Q2 FY2027, Oracle guided total cloud revenue growth of 65% to 71%. That consistency is the signal investors track as datacenter capacity additions continue to ramp.