EarningsQ1 2027 Earnings Report
MX:ORCL Q1 2027 EPS Results
Actual EPS$34.87
Consensus EPS$31.58
Beat/MissBeat by +$3.29
One Year Ago EPS$26.70
MX:ORCL Q1 2027 Revenue Results
Actual Revenue$351.35B
Expected Revenue$347.54B
Beat/MissBeat by +$3.81B
YoY Revenue Growth+29.61%
Earnings Announcement Details
QuarterQ1 2027
Date09/10/2026
TimeAfter Close
Conference CallThursday, September 10, 2026
MX:ORCL Upcoming Earnings
Oracle's next earnings date is estimated for December 14, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
MX:ORCL Q1 2027 Earnings Call
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Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly optimistic, characterized by record revenue, accelerating cloud infrastructure growth, robust AI demand and utilization, substantial contract activity, expanding multi-cloud capabilities, strong applications and AI adoption, and upgraded fiscal 2027 guidance. The principal challenges were the expected gross-margin decline during the infrastructure ramp, negative free cash flow, elevated CapEx, the absence of a specific positive free cash flow timeline, and comparatively slower NetSuite growth. Highlights significantly outweighed the lowlights.Company Guidance
Record Revenue and Sequential Q1 Growth
Q1 total revenue reached a record $19.3 billion, up 30% year over year in US dollars. For the first time, Q1 total revenue grew sequentially, compared with the historical pattern of a lighter Q1 following record Q4 results.
Cloud Infrastructure Acceleration
Cloud infrastructure revenue was $7.4 billion, up 121% year over year, following 93% growth in Q4. The growth was driven by strong execution in bringing record levels of new megawatt capacity online, supported by continued demand for compute and database services. Oracle expects acceleration to continue through the remainder of fiscal 2027 as more RPO converts into revenue.
Strong Operating Income and EPS Growth
Non-GAAP operating income increased 31% in US dollars to $8.2 billion, driven by strong revenue progression, lower operating costs, simplification and efficiency actions, and operating leverage. Non-GAAP EPS increased 30% in US dollars to $1.92, while non-GAAP operating margin remained around 42%.
Record Operating Cash Flow and RPO Growth
Cash flow from operations reached a record $23 billion in Q1, reflecting strong execution, strong demand, and the collection of customer prepayments. Remaining performance obligations increased by $26 billion from Q4. Oracle said the vast majority of new RPO contracts used prepay, bring-your-own-hardware, or similar mechanisms and would not impact CapEx or revenue until fiscal 2028 or beyond. Oracle now expects around half of its RPO to convert into sales over the next 36 months.
Applications and SaaS Growth
Cloud apps grew 10% in Q1, with Fusion growing 14% and industry applications growing at greater than 20%. Oracle Health continued to accelerate. The company cited go-lives or increased Fusion usage at Uber Technologies, Stanford University, and Mitsubishi UFJ Bank, and additional Fusion agentic application adoption by Johnson Controls, Saudi National Bank, GuideWell Mutual Holding Corporation, and Petronas.
Embedded AI Adoption Across Fusion
Customers used Oracle's embedded AI capabilities more than 150 million times during the quarter, up 42% sequentially. Oracle AI agents executed more than 3.5 million times in production, nearly doubling quarter over quarter. Customers had over 2.3 thousand AI agents in production, up 90% quarter over quarter, and Fusion production usage consumed 900 billion tokens during the quarter.
AI-Powered Application Deployment Initiatives
Oracle plans to unveil an agentic AI accelerator at AI World in October to automate and orchestrate application implementation. The company said the technology is intended to compress SaaS deployments from years to months and months to weeks, at a dramatically lower cost. Oracle also cited healthcare implementations moving from high double-digit months to single months and NetSuite implementations moving from double-digit months to single-digit weeks for early customers using its AI tools.
NetSuite AI Product Launch and Adoption
Oracle announced general availability of NetSuite Next, an AI-powered agentic experience infused across customer workflows. The NetSuite AI connector service, which securely connects NetSuite data to AI assistants including ChatGPT and Claude, was already being used by more than 10 thousand customers and was described as one of the fastest-adopted capabilities in NetSuite's history. Everyman Jack estimated that the service would save $350 thousand annually and nearly 5 thousand hours of work.
Oracle Health Agentic Care Management
Oracle plans to debut an agentic care management system at its Oracle Health and Life Sciences customer event. The system is designed to connect clinical research and care delivery, reduce the burden of records management for patients, and enable providers to practice the top of their license with AI as the user interface.
Rapid AI Capacity Delivery
OCI delivered 850 megawatts of AI capacity containing more than 3 thousand GPUs to customers since the end of Q4. Q1 delivery was almost three times the amount delivered in all of Q4 and represented 73% of the total capacity delivered in the prior fiscal year.
AI Contract Growth, Utilization, and Renewal Pricing
Oracle closed more than $30 billion of additional AI contracts in Q1 without requiring additional cash from Oracle. GPU utilization was 97.9%. All GPUs that came up for renewal in Q1 were renewed or resold at a 20% premium to prior contracts, with the majority of those GPUs being four years or older.
Abilene Data Center Execution
Oracle delivered 131 thousand GPUs at the Abilene site in Q1, 1.9 times the volume delivered in Q4. Six of eight campus buildings, representing 618 megawatts and 75% of total capacity, had been delivered to the customer. Customer acceptance was compressed to 24 hours, and the recently released GPT-6 Astra was trained at the Abilene site. Shackleford, Oracle's next gigawatt-scale campus, was progressing well.
Multi-Cloud Database Expansion
Multi-cloud database revenue grew 353% year over year, while multi-cloud customers grew 180% year over year. Oracle completed its planned Azure and AWS regional footprint expansion, reaching 70 multi-cloud database regions and 119 availability zones.
Expanded Cloud Connectivity and AI Model Ecosystem
Oracle made Oracle Interconnect for AWS generally available, giving OCI private high-speed connections to all hyperscalers with no data transfer charges. Oracle expanded its OpenAI relationship through Oracle Marketplace, including GPT-6 Astra, is bringing Gemini models to enterprise applications, released new Grok models, and expanded its open-source model catalog with models from NVIDIA, Llama, Google, DeepSeek, and others.
Quantum, APEX, and AI Data Platform Expansion
Oracle announced a multiyear partnership with Quantinuum to offer its Helios quantum computer through OCI for hybrid quantum and AI workloads. Oracle APEX 26.1 now combines infrastructure, database, and model capabilities; APEX supports more than 2 million active applications with thousands added daily. Oracle also integrated its AI Data Platform with Codex and Claude Code, added advanced MLOps capabilities, and worked with early launch customers on business knowledge models, semantic reasoning, and insight agents.
Data Center Delivery Confidence and Risk Management
Oracle said the New Mexico and Wisconsin data centers were progressing well, with New Mexico's data center on track and its air permit being acquired, while Wisconsin's data center delivery was described as on track. Neither site was expected to affect previously stated fiscal 2027 revenue or earnings guidance. Oracle said its broad, diverse set of developments and backup options supported its ability to meet current and future RPO growth.
Maintained Gross Margin Framework Despite Pricing and Cost Changes
Clayton Magouyrk said that in a demand-exceeds-supply environment, prices typically go up and Oracle was charging more across its businesses to compensate for higher costs. He said Oracle did not expect this to have an impact on gross margins and that prior gross-margin guidance remained true.
Raised Fiscal 2027 Guidance
Oracle raised full-year fiscal 2027 guidance to at least $90 billion in total revenue, representing a year-over-year increase of 34%, and to $8.10 in non-GAAP EPS. Q2 guidance calls for total revenue growth of 30% to 34%, cloud revenue growth of 65% to 71%, and non-GAAP EPS of $1.85 to $1.93, up 21% to 25% in US dollars.
Sovereign and General-Purpose Cloud Demand
Oracle said its Alloy sovereign cloud business was doing well, with partners in Japan and the Middle East and demand from both commercial and government-focused sovereign cloud customers. The company also said its large general-purpose cloud business was growing rapidly, with great growth rates and great margins.
MX:ORCL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed