AUSTIN, September 10 — Oracle Corporation reported first-quarter fiscal 2027 revenues of $19.3 billion, up 30% year over year, and the figure that matters most sat lower down the release: Cloud Infrastructure grew 121%. The Austin, Texas-based company said the growth reflected strong execution in its infrastructure business, including delivery of 850 megawatts of additional datacenter capacity. Cloud revenues, comprising Infrastructure-as-a-Service and Software-as-a-Service, rose 62% to $11.6 billion.
Within that, IaaS jumped 121% while Cloud Applications (SaaS) increased 10%. Software revenues fell 3% to $5.5 billion.
Oracle attributed the decline to customers continuing to migrate from on-premises software to the cloud. Services revenues were $1.4 billion, up 5%, and Hardware revenues were $0.8 billion, up 15%.
Profit and cash
GAAP operating income came in at $6.7 billion, up 57%, and non-GAAP operating income was $8.2 billion, up 31%, which Oracle tied to broad-based demand in Cloud Infrastructure and Cloud Applications. GAAP net income available to common shareholders reached $4.7 billion, up 60%. Non-GAAP net income available to common shareholders grew to $5.8 billion, up 34%.
GAAP earnings per share rose to $1.56, up 55%, and non-GAAP earnings per share climbed to $1.92, up 30%. Operating cash flow was a record first-quarter $23 billion, up 184%.
Free cash flow was negative $5 billion for the quarter as Oracle continued investments to support Cloud Infrastructure growth. Remaining Performance Obligations rose to $664 billion after Oracle booked more than $30 billion of additional AI cloud contracts in the quarter. The company said customer demand for AI cloud training and inferencing services continues to grow faster than supply, and confirmed the new contracts create no incremental impact on its plans to raise capital.
Since the end of the fourth quarter, Oracle delivered more than 300,000 GPUs to AI cloud customers, almost triple the capacity delivered in Q4 FY26.
Capital and guidance
During the quarter, Oracle completed the sale of $20 billion of common stock before commissions through an at-the-market equity program as part of its previously disclosed capital investment program. Oracle also declared a quarterly cash dividend of $0.50 per share of outstanding common stock. For the second quarter of fiscal 2027, Oracle provided forward-looking guidance, and for the full fiscal year 2027 it now expects total revenue of at least $90 billion and non-GAAP earnings per share of $8.10.
The company also introduced a new Oracle AI Data Platform that automatically generates Enterprise Ontologies, and a new 100% agentic AI health care management and electronic health records system for hospitals and clinics, made up of AI agents for medical specialties from general medicine to oncology to radiology. Investors will note the gap between the infrastructure surge and the software decline, and whether Oracle can keep converting AI demand into capacity fast enough to hold the growth rate.
The second-quarter guidance and the pace of datacenter delivery are the next markers to watch.
