# Oracle (ORCL) Q1 FY2027 earnings

Results filed 2026-09-10 for the quarter ended 2026-08-31. Source page: https://earnings.opennash.com/companies/orcl/2027-q1/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1341439/000119312526387905/0001193125-26-387905-index.htm
> 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.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenues | $19.3 billion | up 30% in USD and constant currency | GAAP |
| Net income available to common shareholders | $4.7 billion | up 60% | GAAP |
| Diluted EPS | $1.56 | up 55% in USD and up 54% in constant currency | GAAP |
| Non-GAAP EPS | $1.92 | up 30% in USD and constant currency | non-GAAP |
| Operating income | $6.7 billion | up 57% | GAAP |
| Operating income | $8.2 billion | up 31% | non-GAAP |
| Operating margin | 35% |  | GAAP |
| Operating cash flow | $23 billion | up 184% | GAAP |
| Free cash flow | $(5,396) |  | non-GAAP |

## Segments and operating metrics

| Name | 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 |

## 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

1. **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.
2. **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.
3. **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.
4. **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.
5. **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.

## 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.

## Slides and investor documents

- [Presentation Slides](https://s23.q4cdn.com/440135859/files/content_files/Q1-FY27-Oracle-Earnings-Slides.pdf) (Slide deck)
- [Webcast](https://events.q4inc.com/attendee/942462811) (Webcast replay)
- [Financial Tables](https://s23.q4cdn.com/440135859/files/content_files/Q127_Form8K_Exhibit99-1_Earnings_Release_Tables_Final_V2.pdf) (Financial tables)
- [Customer Wins](https://www.oracle.com/customers/earnings/) (Document)
- [GAAP To Non-GAAP](https://s23.q4cdn.com/440135859/files/content_files/2q27guidance-gaap-to-non-gaap-recons_FINAL.pdf) (Document)
- [Detailed Financials Tables xls](https://s23.q4cdn.com/440135859/files/content_files/Q127_Form8K_Exhibit99-1_Earnings_Release_Tables_Final_V2_IR-Version.xlsx) (Document)
- [FX Summary](https://s23.q4cdn.com/440135859/files/content_files/V_Currency-Affect-Analysis_new_20260831.pdf) (Document)
- [10-Q](https://s23.q4cdn.com/440135859/files/content_files/461fdc14-9ec3-424f-b4fa-96fe6ff788ec.pdf) (Document)