Oracle (ORCL) Q1 2027 earnings summary

Executive summary

• Q1 FY27 total revenue reached $19.3B, up 30% year-over-year, driven by strong cloud infrastructure and applications growth.

• Cloud infrastructure revenue surged 121% year-over-year to $7.4B; cloud applications revenue grew 10% to $4.2B.

• Non-GAAP operating income rose 31% to $8.2B, with a 42% operating margin; GAAP operating margin was 35%.

• Non-GAAP EPS increased 30% to $1.92; GAAP EPS rose 55% to $1.56.

• Remaining Performance Obligations (RPO) reached $664B, up $209B year-over-year and $26B sequentially.

Financial highlights

• Record operating cash flow reached $23.1B, up 184% year-over-year, driven by customer prepayments and higher net income.

• Capital expenditures totaled $28.5B, resulting in negative free cash flow of $5B; net cash CapEx was $17.96B.

• Completed $20B at-the-market equity issuance, raising $19.9B in net proceeds.

• Hardware revenues increased 15% to $0.8B; services revenues rose 5% to $1.4B.

• Multicloud database revenue grew 353% year-over-year; multicloud customers up 180%.

Outlook and guidance

• Q2 FY27 guidance: total revenue growth of 30–34%, cloud revenue growth of 64–71%, non-GAAP EPS of $1.83–$1.93.

• FY27 guidance: total revenue expected to exceed $90B (+34% year-over-year), non-GAAP EPS projected at $8.10.

• Expect around half of RPO to convert into sales over the next 36 months.

• Capital expenditures projected at $90–95B for FY27, with net cash CapEx not exceeding $70B.

• Liquidity expected to remain strong, with sufficient cash and financing for at least the next twelve months.