European Investor
11 Sep 2026, 09:13
Oracle Stock Jumps 6% Premarket as AI Cloud Infrastructure Revenue More Than Doubles
Oracle shares rose 6% in premarket trading Friday after the company reported strong fiscal first-quarter results, driven by triple-digit growth in its cloud infrastructure business and rapidly expanding demand for AI computing capacity.
Fiscal Q1 revenue jumped 30% year-over-year to a record $19.3 billion. Total cloud revenue surged 62% to $11.6 billion, led by a 121% increase in Oracle Cloud Infrastructure revenue to $7.4 billion. Cloud applications revenue rose 10% to $4.2 billion. Non-GAAP EPS increased 30% to $1.92, while non-GAAP operating income climbed 31% to $8.2 billion.
AI demand was a major highlight. Oracle booked more than $30 billion of additional AI cloud contracts during the quarter, pushing remaining performance obligations to $664 billion, up $209 billion from a year earlier. The company also delivered more than 300,000 GPUs to AI cloud customers since the end of Q4, nearly tripling the capacity delivered in the previous quarter.
Oracle expects Q2 revenue growth of 30% to 34%, with cloud revenue projected to rise 65% to 71% in U.S. dollars. For fiscal 2027, the company now expects at least $90 billion in revenue and non-GAAP EPS of $8.10.
The results reinforce Oracle’s increasingly important position in AI infrastructure, although the expansion remains capital intensive. Free cash flow was negative $5 billion in Q1 as the company continued investing heavily in additional cloud capacity.
Oracle shares rose 6% in premarket trading Friday after the company reported strong fiscal first-quarter results, driven by triple-digit growth in its cloud infrastructure business and rapidly expanding demand for AI computing capacity.
Fiscal Q1 revenue jumped 30% year-over-year to a record $19.3 billion. Total cloud revenue surged 62% to $11.6 billion, led by a 121% increase in Oracle Cloud Infrastructure revenue to $7.4 billion. Cloud applications revenue rose 10% to $4.2 billion. Non-GAAP EPS increased 30% to $1.92, while non-GAAP operating income climbed 31% to $8.2 billion.
AI demand was a major highlight. Oracle booked more than $30 billion of additional AI cloud contracts during the quarter, pushing remaining performance obligations to $664 billion, up $209 billion from a year earlier. The company also delivered more than 300,000 GPUs to AI cloud customers since the end of Q4, nearly tripling the capacity delivered in the previous quarter.
Oracle expects Q2 revenue growth of 30% to 34%, with cloud revenue projected to rise 65% to 71% in U.S. dollars. For fiscal 2027, the company now expects at least $90 billion in revenue and non-GAAP EPS of $8.10.
The results reinforce Oracle’s increasingly important position in AI infrastructure, although the expansion remains capital intensive. Free cash flow was negative $5 billion in Q1 as the company continued investing heavily in additional cloud capacity.
