Oracle (ORCL) · Software
Oracle Q1 FY2027 earnings: summary, key numbers & outlook
Results filed 10 Sep 2026 · Quarter ended 31 Aug 2026
Slides (15 pages)Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Total quarterly revenues increased 30% to $19.3 billion, with GAAP earnings per share up 55% to $1.56 and non-GAAP earnings per share up 30% to $1.92.
Oracle's first quarter of fiscal 2027 was driven by its AI cloud business. Total revenues rose 30% to $19.3 billion, and Cloud Infrastructure revenue more than doubled, up 121% to $7.4 billion. Software revenues fell 3% as customers keep moving to the cloud. GAAP operating income was $6.7 billion, and GAAP earnings per share were $1.56. Operating cash flow was a record $23 billion, but heavy data center spending left free cash flow negative.
For the second quarter, Oracle expects total revenues to grow 30% to 34% and total cloud revenue to grow 64% to 70% in constant currency. For the full year it now expects total revenue of at least $90 billion and non-GAAP EPS of $8.10. The main tension is funding: remaining performance obligations reached $664 billion, but capital spending was $28.5 billion in the quarter. Oracle raised $20 billion of equity and carries large debt.
Slides & documents
Open the slide deck (PDF, 15 pages) ↗
Showing the first 6 of 15 pages.
From Oracle investor relations
- WebcastWebcast replay ↗
- Financial TablesFinancial tables ↗
- Customer WinsDocument ↗
- GAAP To Non-GAAPDocument ↗
- Detailed Financials Tables xlsDocument ↗
- FX SummaryDocument ↗
- 10-QDocument ↗
SEC filing
Key numbers
- Total revenues · GAAP
- $19.3 billion
- Net income available to common shareholders · GAAP
- $4.7 billion
- Diluted EPS · GAAP
- $1.56
- Non-GAAP EPS · non-GAAP
- $1.92
- Operating income · GAAP
- $6.7 billion
- Operating income · non-GAAP
- $8.2 billion
- Operating margin · GAAP
- 35%
- Operating cash flow · GAAP
- $23 billion
up 30% in USD and constant currency
up 60%
up 55% in USD and up 54% in constant currency
up 30% in USD and constant currency
up 57%
up 31%
up 184%
| Segment or metric | Value | Change |
|---|---|---|
| Total cloud revenues | $11.6 billion | up 62% in USD & up 61% in constant currency |
| Cloud Infrastructure (IaaS) | $7.4 billion | up 121% in USD & up 120% in constant currency |
| Cloud Applications (SaaS) | $4.2 billion | up 10% in USD and constant currency |
| Software revenues | $5.5 billion | down 3% |
| Services revenues | $1.4 billion | up 5% |
| Hardware revenues | $0.8 billion | up 15% |
| Remaining Performance Obligations | $664 billion | up $209 billion year-over-year |
Where each number comes from
- Total revenues: “Record Q1 Total Revenues up 30% in USD and constant currency to $19.3 billion.”
- Net income available to common shareholders: “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%.”
- Diluted EPS: “Q1 GAAP Earnings per Share up 55% in USD and up 54% in constant currency to $1.56”
- Non-GAAP EPS: “non-GAAP Earnings per Share up 30% in USD and constant currency to $1.92.”
- Operating income: “Oracle generated Q1 GAAP operating income of $6.7 billion, up 57%, while non-GAAP operating income rose to $8.2 billion, up 31%”
- Operating income: “Oracle generated Q1 GAAP operating income of $6.7 billion, up 57%, while non-GAAP operating income rose to $8.2 billion, up 31%”
- Operating margin: “OPERATING INCOME | $6,728 | $1,423 | $8,151 | $4,277 | $1,959 | $6,236 | 57% | 31% | 57% | 31% OPERATING MARGIN % | 35% | 42% | 29% | 42%”
- Operating cash flow: “Oracle’s strong operating income translated to a record Q1 operating cash flow of $23 billion, up 184%.”
- Total cloud revenues: “Record Q1 Total Cloud Revenues up 62% in USD & up 61% in constant currency to $11.6 billion.”
- Cloud Infrastructure (IaaS): “Q1 Cloud Infra (IaaS) Revenue up 121% in USD & up 120% in constant currency to $7.4 billion.”
- Cloud Applications (SaaS): “Q1 Cloud Apps (SaaS) Revenue up 10% in USD and constant currency to $4.2 billion.”
- Software revenues: “Software revenues were down 3% to $5.5 billion, reflecting our customers’ continuing migration from on-premises software to the Cloud.”
- Services revenues: “Services revenues were $1.4 billion, up 5%, and Hardware revenues were $0.8 billion, up 15%.”
- Hardware revenues: “Services revenues were $1.4 billion, up 5%, and Hardware revenues were $0.8 billion, up 15%.”
- Remaining Performance Obligations: “Remaining Performance Obligations or RPO up $209 billion year-over-year to $664 billion”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q1 FY2027 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $19.3B | +29.6% | +0.8% |
| Operating income | $6.7B | +57.3% | +9.7% |
| Net income | $4.8B | +62.6% | +10.6% |
| Diluted EPS | $1.56 | +54.5% | — |
| Free cash flow | -$5.4B | −1390.6% | −188.1% |
| Operating margin | 34.8% | +6.1 pts | +2.8 pts |
Calculated by code from XBRL, not by the model.
Guidance check
| Metric | Outlook given with Q4 FY2026 | Reported | Result |
|---|---|---|---|
| EPS (non-GAAP) | between $1.72 and $1.76 | $1.92 | above the range |
Compared with the company's own guidance, not analyst estimates, and only where the outlook and the reported figure are the same measure on the same basis. Ranges are worked out by code from the company's wording. How this works.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Total revenue growth (constant currency and USD) | Q2 FY 2027 | between 30% and 34% |
| Total cloud revenue growth (constant currency) | Q2 FY 2027 | between 64% and 70% |
| Total cloud revenue growth (USD) | Q2 FY 2027 | between 65% and 71% |
| Non-GAAP EPS (constant currency) | Q2 FY 2027 | between $1.83 and $1.91 |
| Non-GAAP EPS (USD) | Q2 FY 2027 | between $1.85 and $1.93 |
| Total revenue | fiscal year 2027 | at least $90 billion |
| Non-GAAP EPS | fiscal year 2027 | $8.10 |
Key takeaways
Cloud Infrastructure revenue more than doubled
Cloud Infrastructure (IaaS) revenue rose 121% to $7.4 billion, lifting total cloud revenues 62% to $11.6 billion. Cloud Apps (SaaS) grew 10% to $4.2 billion.
RPO reached $664 billion on new AI contracts
Oracle booked more than $30 billion of additional AI cloud contracts in Q1, taking RPO up $209 billion year-over-year to $664 billion. It says the new contracts have no incremental impact on its plans to raise capital.
Record operating cash flow, negative free cash flow
Operating cash flow was a record $23 billion, up 184%, but capital expenditures of $28,499 million left free cash flow at negative $5 billion.
Equity raise and debt shape the balance sheet
Oracle completed the sale of $20 billion of common stock through its At-the-Market program in Q1. Notes payable and other borrowings, non-current, were $117,712 million at August 31, 2026.
Full-year outlook raised to at least $90 billion
Oracle now expects fiscal 2027 total revenue of at least $90 billion and non-GAAP EPS of $8.10. For Q2 it guides to non-GAAP EPS of $1.85 to $1.93 in USD, which is 21% to 25% growth excluding a one-time gain from Q2 FY2026.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q2 FY25 | $14.1B |
| Q3 FY25 | $14.1B |
| Q4 FY25 | $15.9B * |
| Q1 FY26 | $14.9B |
| Q2 FY26 | $16.1B |
| Q3 FY26 | $17.2B |
| Q4 FY26 | $19.2B * |
| Q1 FY27 | $19.3B |
Data
| Q2 FY25 | $1.10 |
| Q3 FY25 | $1.02 |
| Q1 FY26 | $1.01 |
| Q2 FY26 | $2.10 |
| Q3 FY26 | $1.27 |
| Q1 FY27 | $1.56 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q2 FY25 | 30.0% |
| Q3 FY25 | 30.8% |
| Q4 FY25 | 32.1% |
| Q1 FY26 | 28.7% |
| Q2 FY26 | 29.5% |
| Q3 FY26 | 31.8% |
| Q4 FY26 | 32.0% |
| Q1 FY27 | 34.8% |
Data
| Q2 FY25 | -$2.7B |
| Q3 FY25 | $71.0M |
| Q4 FY25 | -$2.9B |
| Q1 FY26 | -$362.0M |
| Q2 FY26 | -$10.0B |
| Q3 FY26 | -$11.5B |
| Q4 FY26 | -$1.9B |
| Q1 FY27 | -$5.4B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
How much revenue did Oracle report in Q1 FY2027?
Total revenues rose 30% to $19.3 billion. Cloud revenues were $11.6 billion, up 62%, led by Cloud Infrastructure at $7.4 billion, up 121%.
What is Oracle's guidance for the second quarter?
Oracle expects total revenues to grow 30% to 34% and total cloud revenue to grow 65% to 71% in USD. It expects non-GAAP EPS of $1.85 to $1.93 in USD.
What is Oracle's full-year fiscal 2027 outlook?
Oracle now expects total revenue of at least $90 billion and non-GAAP EPS of $8.10.
How much cash did Oracle generate and spend?
Operating cash flow was a record $23 billion, up 184%. Capital expenditures were $28,499 million, so free cash flow was negative $5 billion.
How large is Oracle's contracted backlog?
Remaining Performance Obligations were $664 billion, up $209 billion year-over-year. Oracle booked more than $30 billion of additional AI cloud contracts in Q1.