Cloud infrastructure revenue more than doubled and remaining performance obligations reached $664 billion. The company also guided to $90 billion to $95 billion of capital spending and disclosed a $20 billion equity issuance program.
Oracle reported fiscal first-quarter 2027 results after Thursday's close, and the two halves of the release point in opposite directions.
Total revenue rose 30% year over year to $19.3 billion. Cloud infrastructure revenue reached $7.4 billion, up 121%. Non-GAAP earnings per share came in at $1.92, up 30% and roughly 11% above the $1.73 consensus. Non-GAAP operating income was $8.2 billion, up 31%, for a 42% operating margin. CPU and GPU infrastructure revenue was $6.5 billion, up 151%. Multi-cloud database revenue grew 353%. Cloud applications revenue was $4.2 billion, up 10%.
The headline figure was the backlog. Remaining performance obligations reached $664 billion, up $209 billion year over year and up $26 billion sequentially. Oracle said the quarter marked its ninth consecutive quarter of infrastructure revenue acceleration, and that demand for AI infrastructure "remains robust." GPU utilization ran at 97.9%, and the company added 850 megawatts of data-center capacity in the quarter, roughly 300,000 GPUs.
The cash statement tells a different story
Operating cash flow was $23 billion. Free cash flow was negative $5 billion, on $28 billion of capital spending in a single quarter.
Full-year fiscal 2027 guidance calls for revenue of at least $90 billion, representing 34% constant-currency growth, and non-GAAP EPS of $8.10. Capital expenditure guidance is $90 billion to $95 billion, with net cash capex stated as not exceeding $70 billion. The company also disclosed a $20 billion at-the-market equity issuance program.
A company guiding to capital spending roughly equal to its full-year revenue, while running negative free cash flow and adding an equity issuance facility, is funding a build-out rather than harvesting one. That is a defensible strategy in a demand environment this strong. It is also a materially different investment case from the one implied by a 42% operating margin and a $664 billion backlog read in isolation.
Oracle also disclosed that much of the quarter's RPO growth came through prepay arrangements or bring-your-own-hardware models. Backlog composition matters as much as backlog size, and that detail is the one a careful reader should sit with longest.
The stock did both things
Oracle shares fell roughly 5% in Thursday's regular session, closing near $153, before rising about 4.3% in after-hours trading to roughly $159.58 once the results were digested. The decline came before the print and the recovery after it, which is the pattern of a stock that had been de-risked into an event and then partially re-rated on the content.
The regular-session decline also coincided with a broad semiconductor and technology selloff driven by rising Treasury yields and an oil-price shock, so Oracle-specific pre-earnings positioning cannot be cleanly separated from the sector move.
The measurable next step is whether prepay-weighted RPO converts to recognized revenue at the pace the guidance implies, and whether the $70 billion net cash capex ceiling holds through a year in which the company has already spent $28 billion in one quarter.