Oracle Corporation

Oracle reported Q1 fiscal 2027 total revenue of a record $19.3 billion, up 30% year over year in U.S. dollars. Cloud infrastructure revenue was $7.4 billion, up 121%, and cloud apps revenue grew 10%, with Fusion up 14% and industry applications above 20%. Non-GAAP operating income rose 31% to $8.2 billion, non-GAAP operating margin was around 42%, and non-GAAP EPS was $1.92, up 30%. Remaining performance obligations increased $26 billion from Q4. Cash flow from operations was a record $23 billion, CapEx was $28 billion, and free cash flow was negative $5 billion; net cash CapEx was $18 billion. For Q2, Oracle expects total revenue growth of 30% to 34% and cloud revenue growth of 65% to 71%, with non-GAAP EPS of $1.85 to $1.93. For the full year, Oracle raised guidance to at least $90 billion in total revenue, a 34% increase, and non-GAAP EPS of $8.10.

Mike Sicilia framed the quarter as evidence that Oracle’s applications business is being strengthened, not threatened, by AI. He argued that AI agents will accelerate deployments and make Oracle’s suites easier and faster to adopt, pointing to strong Fusion, Oracle Health, and industry apps performance plus upcoming agentic tools announced for AI World. His tone was confident and expansive, emphasizing that Oracle’s combination of applications, workflows, security, and AI is becoming harder for rivals to match.

Hilary Barbara Maxson said the quarter reflected “acceleration” across the company, with strong execution in both cloud infrastructure and cloud apps. She highlighted record revenue, 31% non-GAAP operating income growth to $8.2 billion, and operating margin holding around 42% despite expected gross margin pressure from data center ramping and infrastructure mix. She also cited $23 billion of operating cash flow, $28 billion of CapEx, $18 billion of net cash CapEx, completion of the $20 billion equity issuance, and reiterated full-year CapEx of $90 billion to $95 billion with not more than $70 billion in net cash CapEx.

Analysts focused on whether Oracle’s AI CapEx could keep rising, whether data center delays in New Mexico and Wisconsin could affect guidance, and how to think about gross margins versus operating margins. Management said CapEx should not be viewed as a hard limit on growth because Oracle uses prepayments, supplier financing, and bring-your-own-hardware structures, and it said neither New Mexico nor Wisconsin changes fiscal 2027 revenue or earnings guidance. On margins, management said gross margin likely steps down and then flattens as the ramp continues, while operating margin remains the key value metric; on free cash flow, it gave no date but said the projects are self-funding once ramped.