Oracle reported fiscal first-quarter revenue of $19.35 billion, up 30 percent and topping consensus estimates of $19.14 billion. Net income climbed 60 percent to $4.7 billion.
Cloud infrastructure revenue surged 121 percent to $7.4 billion, the sharpest growth in the company's portfolio. Total cloud revenue rose 62 percent to $11.6 billion, with cloud application revenue increasing 10 percent.
The infrastructure acceleration stems from Oracle's bet on GPU-hungry AI workloads. The company booked over $30 billion in new AI cloud contracts during the quarter and delivered more than 300,000 graphics processing units to customers including Nvidia, Meta, OpenAI, Advanced Micro Devices and SpaceX's AI business. Oracle also added 850 megawatts of data center capacity.
That expansion carries a steep price. Oracle's total debt now stands at $125 billion. More pressing: the company posted negative free cash flow of $5.4 billion in the quarter, up sharply from negative $362 million a year earlier. The deterioration signals that infrastructure capex is outpacing operating cash generation, a dynamic that can persist for years in data center buildouts but raises pressure on Oracle's balance sheet if AI spending cycles cool.
Management guided for second-quarter total revenue growth of 30 to 34 percent and cloud revenue growth of 64 to 70 percent. For fiscal 2027, Oracle raised its full-year revenue outlook to at least $90 billion, modestly above consensus of $89.76 billion, with adjusted earnings estimated at $8.10 per share.
Sales and marketing spend fell 12 percent during the quarter, suggesting Oracle is channeling resources away from customer acquisition and toward infrastructure deployment.
Oracle shares closed roughly flat on the earnings report. The stock is down roughly 20 percent this year as investors weigh the company's capital intensity against its ability to convert AI infrastructure spending into durable margin expansion.
