Oracle Set to Report Q1 FY2027 Results After a Turbulent Year

Oracle is set to report its fiscal first-quarter 2027 earnings, closing out a turbulent 12 months in the company's 49-year history. A year ago, Oracle's fiscal first-quarter results drove a record 36% single-day surge in its share price. The Austin, Texas-based technology giant at the time disclosed that remaining performance obligations (RPO) had jumped 359% year over year to $455 billion, driven largely by a $300 billion agreement with OpenAI.

Since hitting an all-time high in September 2025, Oracle's shares have fallen more than 50%. The relative strength line, which measures the stock's performance against the S&P 500, currently stands at 12. Recent quarterly reports from Nvidia, Amazon, Microsoft, and Alphabet all indicate continued strong demand for computing infrastructure.

On the revenue front, Oracle's overall fiscal 2026 revenue grew 17%, compared with an average annual growth rate of 5.4% from fiscal 2019 to fiscal 2025. The company has guided to $90 billion in fiscal 2027 sales, implying growth of more than 30%. The core driver is Oracle Cloud Infrastructure (OCI), which generated $18 billion in fiscal 2026 revenue, up 77% year over year. As of May, Oracle's backlog had reached $638 billion. To meet customer demand, Oracle is building a total of 4.5 gigawatts of data center capacity.

On costs, Oracle's fiscal 2026 operating cash flow rose 54% year over year to $32 billion, but capital expenditures more than doubled to $55.6 billion, resulting in negative free cash flow of $23.7 billion. Two years earlier, Oracle had positive free cash flow of $11.8 billion and capital expenditures of just $6.9 billion. In February 2026, Oracle announced plans to raise $50 billion through a combination of debt issuance and equity financing. Chief Financial Officer Hillary Markon said in June that fiscal 2027 capital expenditures would reach $90 billion to $95 billion, with up to $25 billion covered by prepayments from cloud customers. Oracle is also sharing some costs by having customers purchase advanced computing chips themselves.

In July 2026, S&P Global Ratings downgraded Oracle's credit rating to BBB- from BBB, just one notch above junk status. The S&P report specifically noted that OpenAI accounts for roughly half of Oracle's remaining performance obligations. In September 2025, Clay Magouyrk and Mike Sicilia were named co-chief executive officers, while long-time CEO Safra Catz transitioned to executive vice chair. In April 2026, Oracle appointed a new chief financial officer.