Oracle reported a total revenue of $19.35 billion for its fiscal first quarter, surpassing LSEG consensus estimates of $19.14 billion. The company's net income soared to $4.7 billion, a 60% increase from $2.93 billion the previous year. Cloud revenue was a significant contributor, rising 62% year-over-year to $11.6 billion, with cloud infrastructure revenue experiencing a remarkable 121% increase.
Despite the positive quarterly results, Oracle's stock has seen a decline of 21.5% since the start of the year. The company expanded its data center capacity by an additional 850 megawatts and secured over $30 billion in AI cloud contracts, delivering more than 300,000 GPUs to its AI Cloud customers.
Looking ahead, Oracle anticipates second-quarter revenue growth of 30% to 34%, with cloud revenue expected to rise between 64% and 70%. The company aims for total revenue of at least $90 billion for the fiscal year 2027.
Analysts from Citi have reiterated a Buy rating, noting that Oracle's first-quarter performance has set a positive tone for its upcoming Investor Day, although they describe the company's outlook as modest and conservative. They expect potential upward revisions following the event, given the strong fiscal first-quarter results