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Oracle Shares Surge 7% After Blowout Cloud-Driven Earnings

Oracle Corporation (NYSE: ORCL) shares jumped roughly 7% post-market after the company reported fiscal first-quarter 2027 results following Thursday’s closing bell, easily topping Wall Street expectations and reigniting investor enthusiasm for its artificial intelligence infrastructure buildout.

The Austin, Texas-based software and cloud giant posted non-GAAP earnings per share of $1.92, up 30% year-over-year and well ahead of the $1.74 consensus analyst estimate tracked by Yahoo Finance. Total revenue climbed 30% to $19.3 billion, also outpacing the roughly $19.13 billion Wall Street had modeled. GAAP EPS came in at $1.56, up 55% from a year earlier.

The headline driver was cloud infrastructure. Total cloud revenue (IaaS plus SaaS) surged 62% to $11.6 billion, with Cloud Infrastructure (IaaS) revenue more than doubling, up 121%, to $7.4 billion — accelerating sharply from prior quarters as Oracle brought roughly 850 megawatts of new data center capacity online. Cloud Applications (SaaS) revenue grew a more modest 10% to $4.2 billion.

Perhaps most significant for investors was the backlog. Remaining Performance Obligations (RPO) — contracted future revenue — jumped $209 billion year-over-year to $664 billion, as Oracle booked more than $30 billion in additional AI cloud contracts during the quarter and delivered over 300,000 GPUs to AI customers.

Oracle also raised its outlook, guiding fiscal 2027 total revenue to at least $90 billion and non-GAAP EPS to about $8.10, while projecting second-quarter revenue growth of 30% to 34%.

The results helped ease investor concerns over Oracle’s aggressive, debt-fueled capital spending on AI data centers, which had pressured shares heading into the print, with the stock down more than 30% over the prior year.

Asktraders News Team
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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.

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