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Oracle shares jump 7% as cloud infrastructure revenue more than doubles

Oracle shares rose 7% in extended trading after fiscal first-quarter results beat estimates. Revenue grew 30%, cloud infrastructure revenue more than doubled, and Oracle guided to stronger second-quarter and fiscal 2027 growth.

AI News Feed · 2026-09-11 06:21

For the quarter ended Aug. 31, Oracle reported adjusted earnings per share of $1.92, compared with $1.74 expected by analysts polled by LSEG. Revenue was $19.35 billion, above the $19.14 billion consensus. Revenue grew 30% year over year. Net income was $4.68 billion, or $1.56 per share, up from $2.93 billion, or $1.01 per share, a year earlier.

Cloud revenue soared 62% to $11.6 billion, topping the $11.51 billion consensus from StreetAccount. Cloud infrastructure revenue more than doubled to $7.4 billion, beating the $7.09 billion consensus. Software revenue was $5.5 billion, down 3% and below the $5.61 billion consensus.

Oracle guided fiscal second-quarter adjusted earnings per share of $1.85 to $1.93 and revenue growth of 30% to 34%. LSEG analysts expected $1.89 in adjusted earnings per share and $21.20 billion in revenue, which would indicate 32% growth. For fiscal 2027, Oracle sees $8.10 in adjusted earnings per share and at least $90 billion in revenue. The LSEG consensus was $8.07 in earnings per share and $89.76 billion in revenue.

Much of Oracle's expansion is tied to data center growth as the company tries to become a larger player in the artificial intelligence boom. Oracle said it delivered 850 megawatts of data center capacity during the quarter. But the company has a weaker cash position than hyperscaler competitors and a lower credit rating. Free cash flow has been negative since last year, and Oracle now sits on $125 billion in debt.

At the end of the quarter, Oracle's remaining performance obligations stood at $664 billion, above the $630.6 billion consensus from StreetAccount. The figure includes contracted but unrecognized revenue, deferred revenue and uncollected invoices. New AI contracts will not have any impact on Oracle's plans to raise capital, according to the company's statement. During the quarter, Oracle announced AI agents for human resources teams and obtained a Pentagon contract worth up to $7 billion over a decade.

Oracle shares have dropped 22% this year as of Thursday's close, while the S&P 500 has gained roughly 11%. Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.