Oracle’s quarterly revenue beats estimates as AI boom boosts cloud demand — SkimNews
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- Oracle posted Q1 revenue of $19.3 billion, up 30% year-over-year, topping the analyst average estimate of $19.14 billion compiled by LSEG.
- Oracle's revenue backlog climbed to $664 billion at quarter-end from $638 billion the prior quarter, beating the Visible Alpha consensus of $639.89 billion.
- CFO Hilary Maxson told reporters that most newly contracted cloud revenue doesn't require Oracle to spend heavily on chips, pointing to prepay and bring-your-own-hardware deal structures.
- Oracle still reported Q1 capital expenditure of $28.5 billion (roughly $18 billion in net cash outlay), well above analyst expectations of $19.38 billion.
- Oracle lifted fiscal 2027 adjusted EPS guidance to $8.10 from $8.05 and forecast revenue of at least $90 billion, with Q2 guidance of 30–34% revenue growth.
- Oracle brought 850 megawatts of new data center capacity online during the June–August quarter and secured a nearly $7 billion U.S. Pentagon deal to consolidate software licences.
- Shares rose nearly 7% in extended trading, partially recovering from a year-to-date decline of more than 20% that had previously prompted an S&P Global credit downgrade in July.
Why it matters: Oracle's CFO directly addressed the investor anxiety that had driven a 20%-plus stock slide and an S&P downgrade by claiming most new AI cloud orders won't force further chip capex — yet the quarter's $28.5 billion in capital spending still came in roughly $9 billion above analyst forecasts, leaving the cash-flow-versus-AI-demand tug unresolved for shareholders.
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