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Oracle Announces Q1 Results Driven by Triple Digit Growth in Cloud Infrastructure Revenues

Oracle posts 30% revenue growth, massive AI-driven cloud demand and record cash flow, while funding expansion with a $20 billion equity sale.

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Rhea-AI Summary

Oracle (ORCL) reported Q1 FY27 results with total revenue up 30% year-over-year to $19.3 billion, driven by triple‑digit Cloud Infrastructure growth.

Cloud revenues (IaaS + SaaS) rose 62% to $11.6 billion, including 121% growth in Cloud Infrastructure (IaaS) to $7.4 billion and 10% growth in Cloud Applications (SaaS) to $4.2 billion. GAAP operating income increased 57% to $6.7 billion and GAAP EPS rose 55% to $1.56, while non-GAAP EPS grew 30% to $1.92. Operating cash flow reached a record $23 billion, up 184%, though free cash flow was negative $5 billion due to Cloud Infrastructure investments. Remaining performance obligations climbed by $209 billion to $664 billion, including more than $30 billion of new AI cloud contracts, and Oracle completed a $20 billion at-the-market common stock sale. The board declared a $0.50 quarterly dividend.

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Positive

  • Total revenue $19.3 billion, up 30% year-over-year in Q1 FY27
  • Cloud revenue $11.6 billion, up 62% year-over-year
  • Cloud Infrastructure (IaaS) $7.4 billion, up 121% year-over-year
  • Non-GAAP EPS $1.92, up 30% year-over-year; GAAP EPS $1.56, up 55%
  • Operating cash flow $23 billion, up 184%, a record Q1 level
  • Remaining performance obligations $664 billion, up $209 billion year-over-year, with over $30 billion new AI cloud contracts
  • FY27 guidance for at least $90 billion revenue and $8.10 non-GAAP EPS
  • Quarterly dividend of $0.50 per share declared for shareholders of record on October 9, 2026

Negative

  • On-premises software revenue declined 3% year-over-year to $5.5 billion
  • Free cash flow was negative $5 billion due to Cloud Infrastructure investments
  • Common equity issuance of $20 billion via ATM program in Q1 FY27, implying dilution
  • Q2 FY27 non-GAAP EPS including prior-year one-time gain expected to decline 14% to 19% in USD
  • Interest expense increased 55% year-over-year to $1.4 billion

News Explained

Oracle completed a $20 billion ATM sale, adding common shares and potentially reducing existing holders’ ownership percentage; weighted-average shares rose 3% year over year.

Oracle reports that it completed a $20 billion common-stock sale through its ATM program in Q1 FY27, meaning the issuer sold new shares and existing holders' percentage ownership can be reduced.

An ATM program lets an issuer sell new shares gradually into the open market at prevailing prices; issuing those shares increases the total share count and reduces existing holders' percentage ownership absent offsetting changes.

The release reports diluted weighted-average common shares outstanding of 3,000 in Q1 FY27 versus 2,909 a year earlier, alongside a stated 3% increase.

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Market reaction after Q1 FY27 earnings report: ORCL +6.41%

$150.65 $167.67 Day Range
$468.80B Market Cap

Following this news, ORCL has gained 6.41%, reflecting a notable positive market reaction. Our momentum scanner has triggered 72 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $162.75. Trading volume is elevated at 2.2x the average, suggesting notable buying interest.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

Before publication, ORCL was down 0.55%; comparable substantive earnings announcements produced both...
Analysis

Before publication, ORCL was down 0.55%; comparable substantive earnings announcements produced both positive and negative reactions, with no consistent historical direction established for the current Q1 report.

Key Figures

GAAP diluted EPS: $1.56 Non-GAAP diluted EPS: $1.92 Total revenue: $19.3 billion +5 more
GAAP diluted EPS
$1.56
Q1 FY2027, up 55%
Non-GAAP diluted EPS
$1.92
Q1 FY2027, up 30%
Total revenue
$19.3 billion
Q1 FY2027, up 30%
Cloud infrastructure revenue
$7.4 billion
Q1 FY2027, up 121%
Remaining performance obligations
$664 billion
Q1 FY2027, up $209 billion year-over-year
Free cash flow
Negative $5 billion
Q1 FY2027
ATM common-stock sale
$20 billion
Completed during Q1 FY2027 before commissions
FY2027 revenue guidance
At least $90 billion
Full fiscal year 2027

Previous Earnings Reports

2 past events · Latest: Mar 10
Same Type 2 events
  1. Mar 10

    Q3 financial results

    24h Move
    +9.2%

    Reported revenue, cloud revenue, EPS and RPO growth alongside a raised FY2027 revenue target.

  2. Dec 10

    Q2 financial results

    24h Move
    -10.8%

    Reported strong cloud growth, but EPS included a $2.7B Ampere investment gain.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap, remaining performance obligations, at-the-market equity program, +1 more
5 terms
gaap financial
"Q1 GAAP Earnings per Share up 55% in USD"
GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.
View in glossary
non-gaap financial
"non-GAAP Earnings per Share up 30% in USD"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
View in glossary
remaining performance obligations financial
"Remaining Performance Obligations or RPO up $209 billion"
Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.
at-the-market equity program financial
"through an At-the-Market (ATM) equity program"
An at-the-market equity program lets a company sell newly issued shares directly into the open market at the current trading price through a broker, rather than in a single, prearranged block. It provides flexible, on-demand access to cash—like drawing small amounts from a credit line—but increases the number of shares outstanding, which can reduce existing shareholders’ ownership percentage and put downward pressure on the stock price, so investors monitor program size and pacing.
constant currency financial
"up 54% in constant currency to $1.56"
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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  • Q1 GAAP Earnings per Share up 55% in USD and up 54% in constant currency to $1.56, non-GAAP Earnings per Share up 30% in USD and constant currency to $1.92.
  • Record Q1 Total Revenues up 30% in USD and constant currency to $19.3 billion.
  • Record Q1 Total Cloud Revenues up 62% in USD & up 61% in constant currency to $11.6 billion.
    • Q1 Cloud Infra (IaaS) Revenue up 121% in USD & up 120% in constant currency to $7.4 billion.
    • Q1 Cloud Apps (SaaS) Revenue up 10% in USD and constant currency to $4.2 billion.
  • Remaining Performance Obligations or RPO up $209 billion year-over-year to $664 billion

AUSTIN, Texas, Sept. 10, 2026 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced Q1 FY27 results with strong revenue growth. Total quarterly revenues increased 30% to $19.3 billion, reflecting strong execution in our infrastructure business, with the delivery of 850MW additional datacenter capacity. Cloud revenues (IaaS + SaaS) increased 62% to $11.6 billion, driven by 121% growth in Cloud Infrastructure (IaaS), and 10% growth in Cloud Applications (SaaS). Software revenues were down 3% to $5.5 billion, reflecting our customers' continuing migration from on-premises software to the Cloud. Services revenues were $1.4 billion, up 5%, and Hardware revenues were $0.8 billion, up 15%. 

Oracle generated Q1 GAAP operating income of $6.7 billion, up 57%, while non-GAAP operating income rose to $8.2 billion, up 31%, driven by continued broad-based demand in Cloud Infrastructure and Cloud Applications. GAAP net income available to common shareholders reached $4.7 billion, up 60%, and non-GAAP net income available to common shareholders grew to $5.8 billion, up 34%. Q1 GAAP earnings per share increased to $1.56, up 55%, and non-GAAP earnings per share climbed to $1.92, up 30%. 

Oracle's strong operating income translated to a record Q1 operating cash flow of $23 billion, up 184%. Free cash flow was negative $5 billion for Q1 as Oracle continued to execute on investments to support the growth of its Cloud Infrastructure business.

Remaining Performance Obligations
Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply. Oracle booked more than $30 billion of additional AI cloud contracts in Q1 increasing its RPO to $664 billion. Based on the structuring of those new contracts, the Company confirms there is no incremental impact on its plans to raise capital. Since the end of Q4, Oracle also delivered more than 300,000 GPUs to its AI Cloud customers and almost triple the capacity delivered in Q4 FY26. 

Capital Investment Program and Capital Funding
During Q1 FY 2027, Oracle successfully completed the sale of $20 billion of common stock (before commissions) through an At-the-Market (ATM) equity program, as part of its previously disclosed capital investment program. 

Guidance for Q2 FY 2027
Oracle is providing the following forward-looking guidance for Q2 FY 2027:

  • Total revenues are expected to grow between 30% and 34% in constant currency and USD.
  • Total Cloud revenue is expected to grow between 64% and 70% in constant currency and between 65% and 71% in USD.
  • Non-GAAP earnings per share is expected to be between $1.83 and $1.91 in constant currency and between $1.85 and $1.93 in USD, which represents growth of 19% to 23% in constant currency and 21% to 25% in USD excluding a one-time gain from Q2 FY20261.

Guidance for Full FY 2027
For fiscal year 2027, we now expect total revenue to be at least $90 billion, and non-GAAP EPS to be at $8.10. 

New Oracle AI Data Platform Automatically Generates Enterprise Ontology
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.  To do this efficiently, customers must first precisely describe the semantic details of their private data and business processes in an Enterprise Ontology (a model defining the core concepts, relationships and rules of the business). Palantir pioneered the use of AI on private enterprise data by carefully crafting Enterprise Ontologies for each of their customers. The new Oracle AI Data Platform fully automates the creation of Enterprise Ontologies—making it inexpensive, easy and fast and for any enterprise to use the most advanced AI models to reason on their private data and automate their business processes.

New 100% Agentic AI Health Care Management System for Hospitals and Clinics 
Oracle's AI Health Care Management and Electronic Health Records system is an all-new 100% Agentic system made up of a collection of AI agents for every medical specialty from General Medicine to Oncology to Radiology. These specialized AI agents assist medical professionals in diagnosing and treating their patients—leading to better quality of care and better outcomes. AI is on the brink of making quality healthcare accessible to more people throughout the world.

Common Stock Quarterly Dividend
The board of directors declared a quarterly cash dividend of $0.50 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on October 9, 2026, with a payment date of October 23, 2026.

Footnote
1 – Q2 FY26 results included a one-time net investment gain from the sale of Oracle's interest in Ampere. Including the investment gain, Q2 FY27 non-GAAP earnings per share is expected to decline between -19% and -15% in constant currency and decline between -18% and -14% in USD.

Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/. 

About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.

Trademarks
Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.

"Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including statements regarding the anticipated benefits and future use cases for AI, expected future revenues, cloud revenue growth, earnings per share, and future dividend payments are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services, including our AI products; our AI products not operating as anticipated;  our ability to successfully execute our Oracle Cloud strategy; our ability to anticipate, plan for, secure and manage datacenter capacity; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components such as graphic processing units; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions, joint ventures and strategic alliances; business volatility and risks associated with government contracting; economic, political and market conditions, including tariffs and trade wars; information technology system failures, privacy and data security concerns; cybersecurity breaches; disruptions from our period workforce restructurings; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations, including healthcare regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of September 10, 2026. Oracle undertakes no duty to update any statement in light of new information or future events.









 ORACLE  CORPORATION 

 

Q1 FISCAL 2027 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data) 











Three Months Ended August 31,


% Increase



% Increase

(Decrease)



2026

% of 

2025

% of 

(Decrease)

in Constant



Revenues

Revenues

in US $

Currency (1)

REVENUES








Cloud

$          11,607

60 %

$             7,186

48 %

62 %

61 %


Software

5,550

29 %

5,721

38 %

(3 %)

(3 %)


Hardware

774

4 %

670

5 %

15 %

16 %


Services

1,414

7 %

1,349

9 %

5 %

5 %


      Total revenues

19,345

100 %

14,926

100 %

30 %

30 %

OPERATING EXPENSES








Cloud and software

6,400

33 %

3,607

24 %

77 %

78 %


Hardware

281

2 %

178

1 %

58 %

57 %


Services

1,052

5 %

1,099

7 %

(4 %)

(4 %)


Sales and marketing

1,811

9 %

2,063

14 %

(12 %)

(12 %)


Research and development 

2,401

12 %

2,491

17 %

(4 %)

(3 %)


General and administrative

376

2 %

376

2 %

0 %

0 %


Amortization of intangible assets

202

1 %

420

3 %

(52 %)

(52 %)


Restructuring and other

94

1 %

415

3 %

(77 %)

(77 %)


      Total operating expenses 

12,617

65 %

10,649

71 %

18 %

19 %

OPERATING INCOME

6,728

35 %

4,277

29 %

57 %

57 %


Interest expense

(1,428)

(8 %)

(923)

(6 %)

55 %

55 %


Non-operating income, net

307

2 %

73

0 %

323 %

331 %

INCOME BEFORE INCOME TAXES

5,607

29 %

3,427

23 %

64 %

63 %


Provision for income taxes (2)

847

4 %

500

3 %

69 %

69 %

NET INCOME

$             4,760

25 %

$             2,927

20 %

63 %

62 %


Preferred stock dividends

81


-




NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$             4,679


$             2,927












EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS:








Basic

$               1.58


$               1.04





Diluted

$               1.56


$               1.01




WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:








Basic

2,966


2,826





Diluted

3,000


2,909












































(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2026, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended August 31, 2026 compared with the corresponding prior year period decreased our total operating expenses by 1 percentage point.

(2)

Provision for income taxes for the first quarter of fiscal 2026 includes the impact of the U.S. One, Big, Beautiful Bill Act, which was signed into law on July 4, 2025.









 






















ORACLE  CORPORATION





















Q1 FISCAL 2027 FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) 

($ in millions, except per share data)

























Three Months Ended August 31,


% Increase (Decrease)
in US $

% Increase (Decrease) in
Constant Currency (2) 




2026




2026



2025




2025


GAAP

Non-GAAP

GAAP

Non-GAAP





GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP
























TOTAL REVENUES


$       19,345


$            -


$       19,345



$       14,926


$            -


$       14,926


30 %

30 %

30 %

30 %























TOTAL OPERATING EXPENSES


$       12,617


$   (1,423)


$       11,194



$       10,649


$   (1,959)


$          8,690


18 %

29 %

19 %

29 %



     Stock-based compensation (3)


1,127


(1,127)


-



1,124


(1,124)


-


0 %

*

0 %

*



     Amortization of intangible assets (4)


202


(202)


-



420


(420)


-


(52 %)

*

(52 %)

*



     Restructuring and other


94


(94)


-



415


(415)


-


(77 %)

*

(77 %)

*


OPERATING INCOME


$          6,728


$     1,423


$          8,151



$          4,277


$     1,959


$          6,236


57 %

31 %

57 %

31 %


OPERATING MARGIN %


35 %




42 %



29 %




42 %


612 bp.

35 bp.

597 bp.

27 bp.


INCOME TAX EFFECTS (5)


$             847


$        344


$          1,191



$             500


$        603


$          1,103


69 %

8 %

69 %

8 %


NET INCOME


$          4,760


$     1,079


$          5,839



$          2,927


$     1,356


$          4,283


63 %

36 %

62 %

36 %


NET INCOME AVAILABLE TO COMMON SHAREHOLDERS


$          4,679


$     1,079


$          5,758



$          2,927


$     1,356


$          4,283


60 %

34 %

59 %

34 %


DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS


$            1.56




$            1.92



$            1.01




$            1.47


55 %

30 %

54 %

30 %


DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING


3,000


-


3,000



2,909


-


2,909


3 %

3 %

3 %

3 %












































(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. 























(2)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2026, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. 























(3)

Stock-based compensation was included in the following GAAP operating expense categories:






























Three Months Ended



Three Months Ended










August 31, 2026



August 31, 2025










GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP








     Cloud and software


$             134


$       (134)


$                 -



$             156


$       (156)


$                 -








     Hardware


6


(6)


-



7


(7)


-








     Services


51


(51)


-



49


(49)


-








     Sales and marketing


171


(171)


-



177


(177)


-








     Research and development


667


(667)


-



647


(647)


-








     General and administrative


98


(98)


-



88


(88)


-








           Total stock-based compensation


$          1,127


$   (1,127)


$                 -



$          1,124


$   (1,124)


$                 -




























(4)

Estimated future annual amortization expense related to intangible assets as of August 31, 2026 was as follows:



     Remainder of fiscal 2027


$             529



















     Fiscal 2028


694



















     Fiscal 2029


620



















     Fiscal 2030


582



















     Fiscal 2031


377



















     Fiscal 2032


182



















     Thereafter


43



















           Total intangible assets, net


$          3,027







































(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 15.1% and 14.6% in the first quarter of fiscal 2027 and 2026, respectively, and an effective non-GAAP tax rate of 16.9% and 20.5% in the first quarter of fiscal 2027 and 2026, respectively. The difference in our GAAP and non-GAAP tax rates in each of the first quarters of fiscal 2027 and 2026 was primarily due to the net tax effects related to stock-based compensation expense, amortization of intangible assets and restructuring and other expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure; and, for the first quarter of fiscal 2026, also due to the impact of the U.S. One, Big, Beautiful Bill Act (refer to Appendix A for additional information).





*

Not meaningful












































 








ORACLE  CORPORATION








Q1 FISCAL 2027 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)











August 31,

May 31,




2026

2026

ASSETS





Current Assets:






Cash and cash equivalents

$              36,369


$              31,289



Marketable securities

708


605



Trade receivables, net

11,394


10,385



Prepaid expenses and other current assets

7,159


4,288




Total Current Assets

55,630


46,567


Non-Current Assets:






   Property, plant and equipment, net

127,845


99,957



   Operating lease right-of-use assets

33,967


29,690



   Goodwill

62,267


62,261



   Deferred tax assets

11,625


11,541



   Other non-current assets

11,925


11,743




Total Non-Current Assets

247,629


215,192


TOTAL ASSETS

$            303,259


$            261,759


LIABILITIES AND STOCKHOLDERS' EQUITY





Current Liabilities:






Notes payable and other borrowings, current 

$                7,625


$                7,199



Accounts payable

11,063


10,977



Accrued compensation and related benefits

1,760


2,225



Deferred revenues

14,686


9,916



Other current liabilities

12,380


11,447




Total Current Liabilities

47,514


41,764


Non-Current Liabilities:






Notes payable and other borrowings, non-current

117,712


122,342



Income taxes payable

12,060


11,771



Operating lease liabilities

30,594


26,648



Other non-current liabilities

28,183


16,178




Total Non-Current Liabilities

188,549


176,939


Stockholders' Equity

67,196


43,056


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$            303,259


$            261,759









 







     ORACLE  CORPORATION 







Q1 FISCAL 2027 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


($ in millions)










Three Months Ended August 31,



2026

2025

Cash Flows From Operating Activities:





Net income 

$        4,760


$        2,927


Adjustments to reconcile net income to net cash provided by operating activities:





Depreciation

3,156


1,351


Amortization of intangible assets

202


420


Deferred income taxes

(73)


515


Stock-based compensation

1,127


1,124


Other, net

(4)


164


Changes in operating assets and liabilities:





Increase in trade receivables, net

(1,009)


(245)


Decrease in prepaid expenses and other assets

114


59


Decrease in accounts payable and other liabilities

(1,076)


(334)


Increase (decrease) in income taxes payable

546


(391)


Increase in deferred revenues from customer prepayments with significant financing component

11,363


-


Increase in other deferred revenues

3,997


2,550


Net cash provided by operating activities

23,103


8,140


Cash Flows From Investing Activities:





Purchases of marketable securities and other investments

(306)


(471)


Proceeds from sales and maturities of marketable securities and other investments

225


255


Capital expenditures

(28,499)


(8,502)


Net cash used for investing activities

(28,580)


(8,718)


Cash Flows From Financing Activities:





Proceeds from issuances of common stock via at-the-market program, net of issuance costs

19,909


-


Net proceeds from employee stock programs

41


1,153


Payments of dividends to stockholders

(1,565)


(1,413)


Repayments of commercial paper, net

-


(238)


(Repayments of) proceeds from short-term financing related to capital expenditures, net

(830)


1,958


Repayments of senior notes, term loan credit agreements and other borrowings

(4,202)


(1,052)


Other financing activities, net

(242)


(198)


Net cash provided by financing activities

13,111


210


Effect of exchange rate changes on cash, cash equivalents and restricted cash

11


27


Net increase (decrease) in cash, cash equivalents and restricted cash

7,645


(341)


Cash, cash equivalents and restricted cash at beginning of period

31,289


10,786


Cash, cash equivalents and restricted cash at end of period

$      38,934


$      10,445








 














 ORACLE  CORPORATION 

 Q1 FISCAL 2027 FINANCIAL RESULTS 

 FREE CASH FLOW (1) 

 ($ in millions) 
















 Fiscal 2026 

 Fiscal 2027 




 Q1 

 Q2 

 Q3 

 Q4 

 TOTAL 

 Q1 

 Q2 

 Q3 

 Q4 

 TOTAL 














GAAP Operating Cash Flow

$              8,140

$              2,066

$              7,151

$            14,620

$            31,977

$            23,103




$            23,103















Capital Expenditures

(8,502)

(12,033)

(18,635)

(16,493)

(55,663)

(28,499)




(28,499)















Free Cash Flow

$                (362)

$            (9,967)

$          (11,484)

$            (1,873)

$          (23,686)

$            (5,396)




$            (5,396)















Operating Cash Flow % Growth over prior year

10 %

58 %

21 %

137 %

54 %

184 %




184 %




























GAAP Net Income

$              2,927

$              6,135

$              3,721

$              4,304

$            17,087

$              4,760




$              4,760















Operating Cash Flow as a % of Net Income

278 %

34 %

192 %

340 %

187 %

485 %




485 %




























(1)  To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows to analyze cash flow generated from operations. We believe free cash flow is also useful as one of the bases for comparing our
    performance with our competitors. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from
    operating activities as a measure of liquidity.

























































 ORACLE  CORPORATION 

 Q1 FISCAL 2027 FINANCIAL RESULTS 

 NET CASH OUTLAY FOR CAPITAL EXPENDITURES (1) 

 ($ in millions) 
















 Fiscal 2026 

 Fiscal 2027 




 Q1 

 Q2 

 Q3 

 Q4 

 TOTAL 

 Q1 

 Q2 

 Q3 

 Q4 

 TOTAL 














Capital Expenditures

$              8,502

$            12,033

$            18,635

$            16,493

$            55,663

$            28,499




$            28,499















Less: Other Short-Term Financing Cash Flow Related to Capital Expenditures (2)

(1,958)

760

(1,469)


(3,345)

830




830


(678)















Less: Customer Prepayments with Significant Financing
Component for Capital Expenditures (3)

-

-

-


(4,592)

(11,363)




(11,363)


(4,592)















Net Cash Outlay for Capital Expenditures

$              6,544

$            12,793

$            17,166

$            11,223

$            47,726

$            17,966




$            17,966




























(1)  To supplement our cash flow for capital expenditures presented in our statements of cash flows in accordance with GAAP, we provide net cash outlay for capital expenditures. Net cash outlay for capital expenditures is defined as capital
    expenditures, less (1) other short-term financing cash flow related to capital expenditures and (2) customer prepayments with significant financing component for capital expenditures. We believe this supplemental presentation of net
    cash outlay for capital expenditures is useful because it provides additional information about the cash requirement for funding of our capital expenditures and is used by management when forecasting expected capital expenditures.


(2)  Represents other short-term financing cash flows related to capital expenditures as reported in cash flows from financing activities in our statements of cash flows. We use third-party manufacturing partners to produce most of our cloud
    infrastructure assets and in some cases supply them with components purchased directly from suppliers. Certain of these arrangements result in a portion of the cash received from and paid to third-party manufacturers presented within
     financing activities in our statements of cash flows.















(3)  Represents customer prepayments with significant financing component as reported in cash flows from operating activities in our cash flow statements presented in accordance with GAAP.





 































 ORACLE  CORPORATION 


 Q1 FISCAL 2027 FINANCIAL RESULTS 


 SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1) 


 ($ in millions) 




















 Fiscal 2026 






 Fiscal 2027 




 Q1 

 Q2 

 Q3 

 Q4 

 TOTAL 


 Q1 

 Q2 

 Q3 

 Q4 

 TOTAL 



REVENUES BY OFFERINGS














 Cloud 

$      7,186

$      7,977

$      8,914

$      9,913

$     33,989


$   11,607




$     11,607



 Software license 

766

939

1,150

1,881

4,737


655




655



 Software support 

4,955

4,938

4,969

4,943

19,804


4,895




4,895



 Software 

5,721

5,877

6,119

6,824

24,541


5,550




5,550



 Hardware 

670

776

714

924

3,084


774




774



 Services  

1,349

1,428

1,443

1,523

5,743


1,414




1,414




Total revenues 

$   14,926

$   16,058

$   17,190

$   19,184

$     67,357


$   19,345




$     19,345


















AS REPORTED REVENUE GROWTH RATES 














 Cloud 

28 %

34 %

44 %

47 %

39 %


62 %




62 %



 Software license 

(12 %)

(21 %)

2 %

(6 %)

(9 %)


(15 %)




(15 %)



 Software support 

1 %

1 %

4 %

0 %

1 %


(1 %)




(1 %)



 Software 

(1 %)

(3 %)

3 %

(2 %)

(1 %)


(3 %)




(3 %)



 Hardware 

2 %

7 %

2 %

9 %

5 %


15 %




15 %



 Services  

7 %

7 %

12 %

13 %

10 %


5 %




5 %




Total revenues 

12 %

14 %

22 %

21 %

17 %


30 %




30 %


















CONSTANT CURRENCY REVENUE GROWTH RATES (2)














 Cloud 

27 %

33 %

41 %

46 %

37 %


61 %




61 %



 Software license 

(13 %)

(23 %)

(2 %)

(6 %)

(10 %)


(14 %)




(14 %)



 Software support 

(1 %)

0 %

0 %

(1 %)

(1 %)


(1 %)




(1 %)



 Software 

(2 %)

(5 %)

(1 %)

(3 %)

(3 %)


(3 %)




(3 %)



 Hardware  

1 %

5 %

(2 %)

7 %

3 %


16 %




16 %



 Services  

5 %

6 %

8 %

12 %

8 %


5 %




5 %




Total revenues 

11 %

13 %

18 %

20 %

16 %


30 %




30 %


















CLOUD REVENUES BY OFFERINGS














 Cloud applications 

$      3,839

$      3,898

$      4,026

$      4,126

$     15,888


$      4,219




$       4,219



 Cloud infrastructure 

3,347

4,079

4,888

5,787

18,101


7,388




7,388




 Total cloud revenues 

$      7,186

$      7,977

$      8,914

$      9,913

$     33,989


$   11,607




$     11,607


















AS REPORTED REVENUE GROWTH RATES 














 Cloud applications 

11 %

11 %

13 %

10 %

11 %


10 %




10 %



 Cloud infrastructure 

55 %

68 %

84 %

93 %

77 %


121 %




121 %




 Total cloud revenues 

28 %

34 %

44 %

47 %

39 %


62 %




62 %


















CONSTANT CURRENCY REVENUE GROWTH RATES (2)














 Cloud applications 

10 %

11 %

11 %

9 %

10 %


10 %




10 %



 Cloud infrastructure 

54 %

66 %

81 %

92 %

75 %


120 %




120 %




 Total cloud revenues 

27 %

33 %

41 %

46 %

37 %


61 %




61 %


















GEOGRAPHIC REVENUES














 Americas 

$      9,662

$   10,467

$   11,361

$   12,988

$     44,478


$   13,711




$     13,711



 Europe/Middle East/Africa 

3,481

3,760

3,964

4,093

15,297


3,726




3,726



 Asia Pacific 

1,783

1,831

1,865

2,103

7,582


1,908




1,908




 Total revenues 

$   14,926

$   16,058

$   17,190

$   19,184

$     67,357


$   19,345




$     19,345

































(1)  The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding.







(2)  We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework
     for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for
    entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2026 and 2025 for the fiscal 2027 and fiscal
    2026 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.





















APPENDIX A

ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain significant expenses including stock-based compensation, expenses related to acquisitions, restructuring and certain other operating expenses, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects related to each of the below items except for the impact of the U.S. One, Big, Beautiful Bill Act:

• Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.

• Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.

• Restructuring and other expenses: We have excluded the effect of restructuring and other expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our restructuring activities and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Restructuring and other expenses consist of employee severance costs and other exit costs related to our restructuring activities, certain asset impairment charges and certain other operating items, net. We believe it is useful for investors to understand the effects of these items on our total operating expenses.

• Impact of the U.S. One, Big, Beautiful Bill Act (OBBBA): OBBBA was signed into law on July 4, 2025. We recorded a net tax expense of $958 million during the first quarter of fiscal 2026, primarily related to the remeasurement of a deferred tax liability previously recorded during fiscal 2021, as part of the partial realignment of our legal entity structure. We have excluded the impact of this charge from our non-GAAP income taxes and net income measures in the first quarter of fiscal 2026. We believe making these adjustments provides insight to our operating performance and comparability to past operating results.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/oracle-announces-q1-results-driven-by-triple-digit-growth-in-cloud-infrastructure-revenues-302875728.html

SOURCE Oracle

FAQ

How did Oracle's revenue mix evolve in Q1 FY27 across cloud, software, hardware and services?

In Q1 FY27, cloud revenue was $11.6 billion (60% of total), up 62%. Software revenue was $5.6 billion (29% of total), down 3%, reflecting ongoing migration from on‑premises to cloud. Hardware revenue was $0.8 billion (4% of total), up 15%, and services revenue was $1.4 billion (7% of total), up 5%.

What guidance did Oracle provide for Q2 FY27 revenue and earnings?

For Q2 FY27, total revenue is expected to grow 30% to 34% in both constant currency and USD. Total cloud revenue is expected to grow 64% to 70% in constant currency and 65% to 71% in USD. Non‑GAAP EPS is expected to be $1.83 to $1.91 in constant currency and $1.85 to $1.93 in USD, representing 19% to 23% growth in constant currency and 21% to 25% in USD, excluding a one‑time gain from Q2 FY26.

How does the prior-year one-time investment gain affect Oracle's Q2 FY27 EPS comparison?

Q2 FY26 non‑GAAP EPS included a one‑time net investment gain from the sale of Oracle's interest in Ampere. Including that gain in the comparison, Q2 FY27 non‑GAAP EPS is expected to decline 19% to 15% in constant currency and decline 18% to 14% in USD.

What details did Oracle give about its capital investment program and equity funding in Q1 FY27?

During Q1 FY27, Oracle completed the sale of $20 billion of common stock before commissions through an at‑the‑market equity program as part of its previously disclosed capital investment program. The company stated that the structuring of new AI cloud contracts does not change its existing plans to raise capital.

When will Oracle's declared Q1 FY27 dividend be paid, and who is eligible?

The board declared a $0.50 per share quarterly cash dividend on common stock. It will be paid on October 23, 2026 to stockholders of record as of the close of business on October 9, 2026.

How is Oracle positioned in AI cloud infrastructure based on recent contracts and hardware deliveries?

Oracle reported that demand for its AI Cloud Training and Inferencing Services continues to grow faster than supply. In Q1, it booked more than $30 billion of additional AI cloud contracts, contributing to RPO of $664 billion, and delivered over 300,000 GPUs to AI cloud customers, nearly tripling capacity delivered in Q4 FY26.

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