Oracle jumps 4% as cloud revenue doubles — SkimNews
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- Oracle reported fiscal Q1 adjusted EPS of $1.92 on revenue of $19.35B, beating LSEG consensus of $1.74 and $19.14B; shares climbed 4% in extended trading after revenue grew nearly 30% year over year.
- Cloud infrastructure revenue more than doubled to $7.4B, topping the $7.09B StreetAccount consensus, while total cloud revenue surged 62% to $11.61B.
- Capital expenditures soared to $28.50B from $8.50B a year earlier, with Oracle delivering 850 megawatts of data center capacity in the quarter — but debt climbed to $125B and free cash flow swung to negative $5.4B from negative $362M.
- CEO Clay Magouyrk said Oracle closed more than $30B in additional AI contracts in Q1 without requiring additional capital; remaining performance obligations hit $664B, above the $630.6B StreetAccount consensus.
- Oracle guided Q2 adjusted EPS to $1.85-$1.93 with 30-34% revenue growth, and for fiscal 2027 sees $8.10 EPS on at least $90B in revenue.
- Oracle pushed back on reports of a delayed natural gas pipeline for its New Mexico data center, saying nothing suggests site delays versus its FY27 outlook; the company is still working to acquire an air permit there, Magouyrk said.
- Oracle shares remain down 22% year to date as of Thursday's close, while the S&P 500 has gained roughly 11%.
Why it matters: Oracle is spending $28.5B on capex this quarter — more than triple a year ago — to build AI data centers, financed in part by $125B in debt and $5.4B in negative free cash flow. Investors are rewarding the near-term cloud infrastructure doubling and $30B in new AI contracts, but Oracle now must convert $664B in contracted obligations into actual cash as liquidity-tightening capex outpaces operating inflows.
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