On September 11, Oracle rose 5.17% in pre-market trading, trading at $161.47/share, with turnover of $8.7556 million. The surge was driven by the company's FY2027 Q1 earnings release, which comprehensively exceeded market expectations.
Oracle reported Q1 adjusted EPS of $1.92, beating the consensus estimate of $1.74 by 10.3%, while revenue came in at $19.35 billion versus the expected $19.14 billion. The cloud infrastructure segment was the standout performer, with revenue surging 121% year-over-year to $7.4 billion, above the $7.19 billion estimate. Remaining Performance Obligations (RPO) climbed to $664 billion, with management indicating approximately half will convert to revenue within 36 months. The company delivered 850 megawatts of data center capacity in the quarter, roughly triple the prior quarter, with GPU renewal premiums of 20% and utilization at 97.9%.
Oracle raised its full-year guidance, now expecting adjusted EPS of $8.10 and revenue of at least $90 billion, both above prior targets and consensus estimates. Notably, Q1 free cash flow was negative $5 billion, reflecting the heavy capital expenditure required to fund its AI infrastructure buildout.
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