SILICON VALLEY — Oracle said revenue from its artificial intelligence data centers more than doubled from a year earlier, driving record first-quarter total revenue and cloud revenue at the hyperscaler. The company, which has completed its transition from a software maker into an AI infrastructure provider, is drawing attention as a beneficiary of OpenAI's latest model, Astra.
Oracle said on the 10th that revenue for the first quarter of fiscal 2027, covering June through August, rose 30% from a year earlier to $19.35 billion, or about 26.14 trillion won. The figure topped the $19.14 billion consensus estimate compiled by London Stock Exchange Group and marked a record high.
First-quarter net profit rose 60% from a year earlier to $4.76 billion. Adjusted earnings per share came in at $1.92, above the $1.74 consensus estimate.
Oracle guided for second-quarter revenue growth of 30% to 34% and adjusted EPS of $1.85 to $1.93. Both are in line with market expectations of 32% and $1.89. The company projected full-year revenue of at least $90 billion and annual capital expenditure of $90 billion to $95 billion.
The expansion of the AI infrastructure business drove the earnings improvement. Cloud revenue, which combines infrastructure as a service and software as a service, rose 62% to $11.6 billion. IaaS revenue grew 121% and SaaS revenue rose 10%. Analysts had projected infrastructure revenue of $7.09 billion, but the actual figure came in higher at $7.4 billion.
Oracle said it added 850 megawatts of data center capacity during the quarter. The company has previously said it operated or was building 162 cloud data centers worldwide in 2025, with the largest project at 800 megawatts. That means the latest additions exceed its previous record scale.
Oracle also disclosed that it handled the training of OpenAI's latest model, GPT-6 Astra, through Stargate, the large-scale AI infrastructure project it runs jointly with OpenAI. "The recently released GPT-6 Astra was trained at our facility in Abilene, Texas," where the Stargate project is underway, said Clay Magouyrk, Oracle's co-chief executive officer. Oracle supplied 131,000 graphics processing units at the site during the quarter.
Cash spending has been the drag on Oracle until now, but management defended its position. "We signed more than $30 billion in additional AI-related contracts in the first quarter without raising additional capital at the company," Magouyrk said.
Oracle's remaining performance obligations stood at $664 billion as of the end of August, exceeding the StreetAccount estimate of $630.6 billion. The figure includes contracted amounts not yet recognized as revenue, deferred revenue and billed amounts not yet collected.
The chief executive's remarks are read as stressing that there is no adverse effect on cash flow. Capital expenditure surged to $28.5 billion during the quarter from $8.5 billion a year earlier, swelling debt to $125 billion. Free cash flow deteriorated to a deficit of $5.4 billion from a deficit of $362 million a year earlier. Operating cash flow, however, jumped 184% to a record $23 billion.
S&P Global downgraded Oracle's credit rating in July as the cash needed to service its growing order book emerged as a concern. Hilary Maxson, Oracle's chief financial officer, stressed that most of the revenue from first-quarter contract signings will not require large cash outlays for chip purchases.
Oracle shares have fallen 22% this year but gained expectations after the earnings release. The stock dropped 5.48% in regular trading, then rebounded when results were announced after the close. Shares rose as much as 7% in after-hours trading before paring gains to around 4%.
