Enterprise cloud spending, meaning the money large businesses pay to rent computing power and software instead of owning their own servers, produced a strong quarter for Oracle Corporation (ORCL). The Austin, Texas-based technology company reported on September 10 that first-quarter fiscal 2027 revenue reached $19.35 billion, up 29.6% from a year earlier and above Wall Street's expectation of $19.14 billion. Oracle raised its full-year revenue target to at least $90 billion, a figure that exceeds the roughly $86.6 billion analysts had previously modeled and implies growth of about 34% from the $67.4 billion the company recorded in fiscal 2026.
Adjusted earnings per share came in at $1.92 for the quarter, up 30.6% year over year and ahead of the analyst estimate of $1.74.
Where the growth is coming from
Oracle Cloud Infrastructure, the division that rents raw computing capacity to businesses running AI workloads, generated $7.4 billion in revenue during the quarter, marking 121% year-over-year growth and the ninth consecutive quarter of accelerating expansion. Total cloud revenue, which combines that infrastructure business with Oracle's software-as-a-service applications, climbed 61.5% to $11.6 billion.
Two additional figures from the quarter drew attention. Remaining performance obligations, a measure of contracted revenue that has not yet been recognized on the income statement, surged to $664 billion. Oracle also signed more than $30 billion in new AI cloud contracts during the period and delivered more than 300,000 graphics processing units to AI cloud customers, nearly tripling the capacity it shipped the prior quarter. To support that demand, the company brought an additional 850 megawatts of data-center capacity online and spent roughly $28.5 billion on capital expenditures.
For the second quarter, Oracle projects revenue growth of 30% to 34% and cloud revenue growth of 65% to 71%. Non-GAAP earnings per share for the period are expected to come in between $1.85 and $1.93. Full-year non-GAAP EPS guidance stands at $8.10.
A steep stock decline despite the beat
Oracle shares have not tracked that operating momentum. The stock has fallen 51% over the past 52 weeks and is down 26% in 2026, with a further 22% drop in the most recent three months.
That slide has pushed Oracle's forward price-to-earnings multiple to 18.46 times, a level below both the industry average and Oracle's own five-year historical multiple.
Analyst reaction to the quarterly results was broadly positive. Oppenheimer analyst Brian Schwartz reiterated a Buy rating with a price target of $275. Cantor Fitzgerald analyst Thomas Blakey also maintained a Buy rating with a target of $284. Citigroup said the quarter strengthened the bullish case heading into Oracle's Investor Day. Of the 44 analysts covering Oracle, 33 rate it Strong Buy, one rates it Moderate Buy, nine suggest Hold, and one flags Strong Sell. The consensus average price target sits at $247.19; the highest individual target stands at $400.
Oracle has raised its dividend for 11 consecutive years. Its next quarterly payment of $0.50 per share is scheduled for October 23 to shareholders of record as of October 9.