Oracle reported adjusted earnings per share of $1.92 for fiscal first quarter 2027, beating the $1.73 analysts had forecast, on revenue of $19.35 billion that surpassed the $19.13 billion estimate. Shares climbed roughly 7% in premarket trading on Friday after the results were released Thursday.
The company booked more than $30 billion in additional AI cloud contracts during the quarter. Remaining performance obligations — representing the total value of future customer contract revenue yet to be recognized — rose to $664 billion.
"Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply," Oracle said in a statement. "Based on the structuring of those new contracts, the Company confirms there is no incremental impact on its plans to raise capital."
For the second fiscal quarter, Oracle guided for adjusted EPS between $1.83 and $1.91 on a constant currency basis, against a consensus expectation of $1.89. Revenue growth is projected at 30% to 34%.
On a full-year basis, the company raised its adjusted EPS forecast to $8.10, up $0.05 from its prior estimate of $8.05. Revenue is expected to reach at least $90 billion, a target Oracle reiterated. Capital expenditures are forecast at up to $95 billion, consistent with guidance issued in June.
Analysts at Citi noted the quarter "checked nearly every box and reinforces the bull case heading into Investor Day." While the update was described as modest, they viewed management's framework as "conservative" given the magnitude of the Q1 outperformance.
"We see a favorable setup for upward revisions at Investor Day and AI World," Citi analysts wrote.
Free cash flow came in negative for a sixth straight quarter.
Shares have been volatile over the past year — chip stocks rallied from late 2022 through April to June 2026 before sliding more than 20% in July, followed by a slight rebound in August.
Oracle will hold its Investor Day alongside an "AI World" event in Las Vegas on October 28.
