Oracle reported a 60% increase in net income available to common shareholders for the first quarter of fiscal 2027 (Q1 FY27), reaching $4.68bn, compared with $2.93bn for the corresponding period a year earlier.
Diluted earnings per share rose 55% to $1.56, up from $1.01. Total revenue for the quarter climbed 30% to $19.35bn from $14.93bn.
Oracle's GAAP operating income grew 57% to $6.73bn in Q1 FY27. Non-GAAP net income available to common shareholders increased 34% to $5.8bn.
The company's non-GAAP earnings per share were up 30% to $1.92. Operating cash flow for the quarter was $23bn, marking an increase of 184%.
Free cash flow was negative $5bn for the quarter as the company continued to invest in cloud infrastructure.
Oracle's total cloud revenues, including both infrastructure (IaaS) and applications (SaaS), increased 62% to $11.6bn. Cloud Infrastructure (IaaS) revenue rose 121% to $7.4bn.
Cloud Applications (SaaS) revenue was $4.2bn, up 10%, while Software revenues declined 3% to $5.55bn. Hardware revenue increased 15% to $774m, and services revenue rose 5% to $1.41bn.
The company's remaining performance obligations at quarter end were $664bn, up $209bn from the previous year.
Oracle stated that more than $30bn in additional AI cloud contracts were booked during the quarter. There was no incremental impact on Oracle's capital raising plans from the structuring of these contracts.
The company said that it delivered over 300,000 graphics processing units (GPUs) to AI Cloud customers, nearly tripling the capacity delivered in the previous quarter.
During the quarter, Oracle completed a $20bn common stock sale as part of its capital investment programme.
For the second quarter of fiscal 2027, Oracle projected total revenue growth between 30% and 34% in both US dollars and constant currency. Total cloud revenue is expected to increase by 65% to 71% in US dollars and 64% to 70% in constant currency.
Non-GAAP earnings per share is forecasted at $1.85 to $1.93 in US dollars, an increase of 21% to 25%, and $1.83 to $1.91 in constant currency, an increase of 19% to 23%, excluding a one-time gain from the prior year.
For the full fiscal year 2027, the company expects at least $90bn in total revenue and non-GAAP earnings per share of $8.10.
In a statement, Oracle said: "Virtually all of Oracle's enterprise customers want to use AI to reason on their private data and to use AI agents to automate their business processes."
In July, Oracle launched a new AI-native builder within its AI Agent Studio for Fusion Applications, enabling customers and partners to create and operate "Fusion Agentic Applications" directly within Oracle Fusion Cloud Applications.
"Oracle Q1 FY27 net income rises 60% to $4.7bn as cloud revenues surge" was originally created and published by Verdict, a GlobalData owned brand.