Oracle's fiscal first-quarter revenue rose 30% year over year to $19.3 billion, while over $30 billion in AI cloud contracts lifted backlog to $664 billion. Free cash flow was negative $5.4 billion, versus analysts' forecast of a $9.56 billion outflow.
Oracle expects roughly half of its $664 billion in remaining performance obligations (backlog) to convert into revenue within 36 months. It raised its fiscal 2027 adjusted EPS forecast to $8.10 from $8.05 and expects annual revenue of at least $90 billion.
Customers prepaid about $11.36 billion toward Oracle's $28.50 billion in quarterly capital expenditures. Reuters reported Oracle had $129.5 billion in debt and that OpenAI accounted for almost half of its backlog. Oracle plans to raise about $40 billion through debt and equity in fiscal 2027, after completing a $20 billion common-stock sale in the first quarter, and expects annual capex of up to $95 billion. Oracle's data-center leases run 15–19 years, while some customer contracts last five years or less.
