An Oracle sign on the floor of the New York Stock Exchange (NYSE) on Wednesday, August 12, 2026 in New York, USA.
Michael Nagle | Bloomberg | Getty Images
oracle Shares soared Friday after the company reported a better-than-expected 30% increase in sales in its latest quarter. Sales were supported by strong demand for cloud infrastructure.
After the stock price soared, it fell to almost the same level.
First-quarter fiscal revenue rose to $19.35 billion, beating LSEG’s consensus estimate of $19.14 billion. Net income increased 60% to $4.7 billion from $2.93 billion a year earlier.
Cloud revenue increased 62% year over year to $11.6 billion. This was driven by a 121% increase in cloud infrastructure revenue and a 10% increase in cloud application revenue.
Despite Friday’s gains, Oracle is down about 20% this year on concerns about the huge amount of debt the company has raised to fund the construction of its artificial intelligence infrastructure.
oracle stock price chart
Oracle delivered an additional 850 megawatts of data center capacity during the quarter. We also closed more than $30 billion in additional AI Cloud contracts and delivered more than 300,000 graphics processing units to AI Cloud customers.
The company expects second-quarter revenue to increase 30% to 34%, with cloud revenue increasing 64% to 70%. It expects total revenues for fiscal year 2027 to be at least $90 billion.
Alongside selling its flagship database software, Oracle has been funding data center expansion for AI workloads and currently has $125 billion in debt. This investment will enable Nvidia, Meta, OpenAI, advanced micro device and space x AI business.
Oracle had negative free cash flow of $5.4 billion in the quarter, compared to negative $362 million in the year-ago period.
A “solid” quarter
Citi analysts reiterated their buy rating in a note Friday, saying Oracle has met expectations and has “cleared the runway” for its upcoming investor day.
“Oracle delivered a solid fiscal first quarter that checked nearly every box and confirmed our bullish stance,” the analysts wrote.
Oracle’s outlook for 2027 is “modest” and the company’s operating framework is “conservative,” analysts said.
“Given the magnitude of the outperformance in the first quarter of the fiscal year, we see favorable setup for upside on Investor’s Day and AI World,” the analysts added.
— CJordan Novet contributed to this report
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