Oracle posts fiscal 2027 first-quarter results; adjusted operating revenue USD 19.35 billion; net profit USD

Oracle reported fiscal 2027 first-quarter results for the period ended August 31, 2026. Adjusted operating revenue was USD 19.35 billion, and net profit was USD 4.68 billion. Revenue was USD 19.3 billion, up 30% year over year, a record high. Adjusted earnings per share were USD 1.92, up 30% year over year. Non-GAAP operating income was USD 8.2 billion, up 31% year over year, with a non-GAAP operating margin of about 42%. First-quarter operating cash flow was USD 23 billion, free cash flow was negative USD 5 billion, and capital expenditure was USD 28.5 billion. Remaining performance obligations were USD 664 billion, up USD 26 billion quarter over quarter.

Cloud infrastructure revenue was USD 7.4 billion, up 121% year over year; cloud applications revenue was USD 4.2 billion, up 10%; total cloud revenue was USD 11.6 billion, up 62%. SaaS overall grew 10%, with Fusion up 14% and industry applications growing more than 20%. Multicloud database revenue rose 353% year over year, and multicloud database customers rose 180% year over year. It now covers 70 multicloud database regions and 119 availability zones.

In the first quarter, Oracle delivered 850 megawatts of AI compute to customers, including more than 300,000 GPUs. Deliveries were about three times the prior quarter and equal to 73% of total deliveries in the prior fiscal year. The Abilene campus delivered 131,000 GPUs in the first quarter, 1.9 times the prior quarter. Six of eight buildings have been delivered, representing 75% of total capacity. First-quarter GPU utilization reached 97.9%. GPUs up for renewal were renewed or resold at a 20% premium to their original contracts, with most having been in use for more than four years.

New AI contracts in the first quarter exceeded USD 30 billion. The company confirmed these contracts require no additional capital outlay and are fulfilled through prepayments, customer-provided hardware, and similar models. The new remaining performance obligations will not affect capital expenditure, and related revenue will be recognized in fiscal 2028 or later. The company said data centers in New Mexico and Wisconsin were not included in the first-quarter 850 megawatts of deliveries and will not affect fiscal 2027 revenue or earnings guidance.

In applications, customers used embedded AI capabilities more than 150 million times in the first quarter, up 42% quarter over quarter; AI agents executed more than 3.5 million times in production environments, nearly doubling quarter over quarter; and customers used more than 2,300 AI agents in production, up 90% quarter over quarter. NetSuite Next was officially launched, and more than 10,000 customers use the NetSuite AI connector service. Oracle's healthcare business continued to accelerate and will release the Magenta care management system.

Oracle raised its fiscal 2027 total revenue guidance to at least USD 90 billion and its non-GAAP earnings per share guidance to USD 8.10. The company's previously disclosed USD 20 billion at-the-market equity offering program was fully completed in the first quarter.

Oracle expanded its partnership with OpenAI to provide access to the OpenAI API, enterprise ChatGPT, and Codex through Oracle Cloud Marketplace. The company is bringing Gemini models into Oracle enterprise applications and released Grok reasoning, multimodal, and text-to-speech models. The open-source model catalog added models from Nvidia, Qwen, Google, DeepSeek, and others. Oracle announced a multiyear partnership with Quentinium to offer its Helios quantum computer through OCI. Nvidia's Vera Rubin systems will make their first customer deliveries in the second quarter.