Oracle Corporation reported Q1 FY27 revenue of $19.3 billion on September 10, 2026, an increase of 30% from a year earlier, as cloud infrastructure revenue more than doubled. Cloud revenue reached $11.6 billion, while Oracle said demand for AI cloud training and inferencing services continued to grow faster than supply.
Cloud Infrastructure, or IaaS, revenue increased 121% in U.S. dollars to $7.4 billion, while Cloud Applications, or SaaS, revenue rose 10% to $4.2 billion. Oracle delivered 850MW of additional data center capacity during the quarter. Software revenue declined 3% to $5.5 billion, which the company attributed to customers’ continued migration from on-premises software to the cloud. Services revenue increased 5% to $1.4 billion, and hardware revenue rose 15% to $0.8 billion.
GAAP operating income rose 57% to $6.7 billion, and non-GAAP operating income increased 31% to $8.2 billion. GAAP net income available to common shareholders reached $4.7 billion, up 60%, while non-GAAP net income grew 34% to $5.8 billion. GAAP earnings per share increased 55% to $1.56, and non-GAAP earnings per share rose 30% to $1.92. Operating cash flow reached a record $23 billion for the first quarter, up 184%, but free cash flow was negative $5 billion as Oracle invested in the expansion of its cloud infrastructure business.
Oracle booked more than $30 billion in additional AI cloud contracts during the quarter, lifting remaining performance obligations by $209 billion year over year to $664 billion. The company said the structure of the contracts would not have an incremental impact on its plans to raise capital. Since the end of Q4, Oracle delivered more than 300,000 GPUs to AI cloud customers, nearly triple the capacity delivered in Q4 FY26. It also completed the sale of $20 billion of common stock before commissions through an At-the-Market equity program during Q1 FY27.
For Q2 FY27, Oracle expects total revenue growth of 30% to 34% in both constant currency and U.S. dollars. It forecasts total cloud revenue growth of 64% to 70% in constant currency and 65% to 71% in U.S. dollars. Non-GAAP earnings per share are expected to range from $1.83 to $1.91 in constant currency and from $1.85 to $1.93 in U.S. dollars, excluding the comparison with a one-time gain from the Q2 FY26 sale of Oracle’s interest in Ampere. For full-year FY27, Oracle now expects revenue of at least $90 billion and non-GAAP earnings per share of $8.10.
Oracle’s board declared a quarterly cash dividend of $0.50 per outstanding common share. The dividend is scheduled to be paid on October 23, 2026, to stockholders of record at the close of business on October 9, 2026. Oracle said its forecasts and statements about anticipated AI benefits and future use cases are forward-looking and subject to material risks and uncertainties.