Oracle’s Stock Rises Due To Better Than Expected Q1 Earnings Report

Oracle’s quarterly revenue surpassed Wall Street expectations on Thursday, offering investors confidence that the software vendor’s AI investments were generating returns without negatively impacting its balance sheet.

Oracle’s shares rose 4% in extended trading on Thursday, as per CNBC.

https://www.cnbc.com/2026/09/10/oracle-orcl-q1-earnings-report-2027.html

An interesting point? Much of Oracle’s expansion is linked to data centre growth, as the company tries to capitalise on the artificial intelligence boom.

Oracle’s Quarterly Revenue Results

Oracle’s revenue jumped almost 30% year over year to $19.35 billion in the first fiscal quarter, which ended on August 31. Analysts had predicted $19.14 billion in revenue.

The company’s net income increased from $2.93 billion, or $1.01 per share a year ago, to $4.68 billion, or $1.56 per equity.

Cloud infrastructure revenue rose 121% to $7.4 billion. Total cloud revenue increased 62% to $11.6 billion.

During this quarter Oracle obtained a 10-year Pentagon software contract worth up to $7 billion over a decade. It also announced AI agents for human resources teams.

The adjusted earnings do not include stock-based compensation expense.

The company reported a smaller cash burn than expected. However, Oracle still has a weaker cash position and a lower credit rating than its hyperscaler competitors and a lower credit rating.

The company now has $125 billion in debt. Negative free cash flow came in at $5.4 billion from negative $362 million a year earlier.

Oracle’s software category contributed $5.55 billion in revenue, lower than estimates and down by 3% compared to the previous quarter.

Oracle’s Predictions For Future Revenues

Oracle expects to continue its positive momentum. For the fiscal second quarter, Oracle expects $1.85 to $1.93 in adjusted earnings per share. It anticipates a revenue growth of 30% to 34%. Analysts surveyed by LSEG predicted about $1.89 in adjusted earnings per share and $21.20 billion in revenue, indicating 32% growth.

For the 2027 fiscal year, Oracle expects $8.10 in adjusted earnings per share, with at least $90 billion in revenue. The LSEG consensus, on the other hand, anticipates $89.76 billion in revenue and $8.07 earnings per share.

Oracle said that most of its newly contracted revenue will not need large cash outlays for chips, helping it keep within its annual spending target of $90 billion to $95 billion, as per Reuters.

https://theedgemalaysia.com/node/817696

The tech giant expects almost half of its current backlog will convert into sales within the next 36 months.

Oracle’s Data Centre Plans Running Behind Schedule?

Hilary Maxson, Oracle’s finance chief, told reporters that the company’s data centre plans were progressing smoothly, after reports emerged that a natural gas pipeline for a New Mexico data centre was facing delays.

“Nothing that we know today would lead us to believe that New Mexico or any of our other sites are delayed relative to the schedules that we included, for example, in our fiscal ’27 outlook,” Maxson added. He stated that the software vendor was working to get an air permit in New Mexico.