Oracle reported on September 10 that fiscal first-quarter 2027 cloud-infrastructure revenue reached $7.4 billion, up 121% year over year, while total cloud revenue rose 62% to $11.6 billion. Reuters independently reported the quarterly results and said both revenue and adjusted earnings exceeded analyst expectations.
Capacity catches up with AI contracts
Oracle says it delivered 850 megawatts of additional data-center capacity during the quarter and more than 300,000 GPUs to AI-cloud customers since the end of the prior quarter. It also says it booked more than $30 billion in additional AI-cloud contracts, lifting remaining performance obligations to $664 billion. Reuters corroborated the contract and backlog totals, but neither source identifies all customers or converts the backlog into a near-term revenue schedule.
The buildout remains capital intensive
The company reported negative free cash flow of about $5 billion as it invested in cloud capacity and completed a $20 billion common-stock sale. Reuters calculated first-quarter capital expenditure at $28.5 billion and negative free cash flow at $5.4 billion, while noting that customer prepayments offset part of the spending burden. These figures show the cost of adding supply even as demand expands.
Oracle says AI training and inference demand is still growing faster than available supply. Its guidance calls for faster cloud growth in the second quarter and at least $90 billion in fiscal-year revenue, but those figures are forecasts, not realized results. Booked contracts, delivered GPUs, and installed power also do not by themselves establish utilization, customer concentration, or long-run returns on the infrastructure program.