Oracle reported a 60% increase in first-quarter net profit to $4.76 billion, driven by surging demand for its cloud infrastructure services.
The enterprise software provider recorded total revenue of $19.34 billion for the first fiscal quarter of 2027, which ended on August 31. The 30% year-on-year revenue growth surpassed expectations on Wall Street, where analysts had forecast $19.14 billion.
Net income for the quarter rose from $2.93 billion, or $1.01 per share, in the same period of the previous fiscal year to $1.56 per share. Excluding non-recurring items, adjusted profit reached $1.92 per share, exceeding the $1.74 per share consensus estimate among financial analysts surveyed by research firm FactSet.
Growth across the business was spearheaded by Oracle's cloud division, where quarterly revenue jumped 62% to $11.61 billion. Demand was particularly robust in cloud infrastructure, where sales surged 121% compared to the prior-year period.
The company also reported securing more than $30 billion in new cloud contracts during the three-month period, driven primarily by enterprise demand for artificial intelligence capabilities.
Cloud infrastructure growth
Cloud infrastructure services allow businesses to rent remote computing power, storage, and database management tools hosted in specialized data centers rather than building and maintaining their own physical IT hardware. As tech companies and enterprises rush to develop and deploy large-scale artificial intelligence models, demand for high-performance cloud processing capacity has expanded rapidly across the technology sector.
Oracle Corporation is a major global technology firm headquartered in Austin, Texas. Founded as a pioneer in relational database management software, the enterprise technology giant has increasingly shifted its core focus toward cloud infrastructure and software-as-a-service applications to compete with major enterprise cloud providers.
Looking ahead to the second fiscal quarter, Oracle projected adjusted profit between $1.85 and $1.93 per share. That guidance brackets the average analyst expectation of $1.89 per share.
For the same second-quarter period, Oracle forecasted total revenue growth of between 30% and 34%. Prior to the report, Wall Street analysts had been projecting second-quarter revenue of $21.18 billion, which would mark a 32% increase year-on-year.
Full-year financial outlook
For the full fiscal year 2027, Oracle reaffirmed its expectation of generating at least $90 billion in total revenue. Management also upgraded its full-year earnings outlook, raising its adjusted profit forecast to at least $8.10 per share from a previous projection of $8.05 per share.
The revised outlook places Oracle's targets above consensus Wall Street estimates. Analysts polled by FactSet had anticipated full-year revenue of $89.66 billion and adjusted earnings of $8.07 per share.
Investors responded enthusiastically to the quarterly figures and raised forecasts. Shares of Oracle jumped 6.25% at 5:31 p.m. Brasilia time in New York after-hours trading following the announcement.
After-hours trading takes place on electronic stock exchanges after regular trading sessions close at 4:00 p.m. Eastern Time in New York. The extended session allows investors to react immediately to corporate earnings announcements, economic data releases, and major news events that occur outside standard market hours.
