Oracle Corporation Q1 FY2027 Earnings Call

· Earnings call transcript and AI-powered summary

Oracle Q1 FY2027 Earnings Summary

Overall Performance: Record quarter with acceleration in cloud infrastructure and apps driving top- and bottom-line growth. Total revenue reached $19.3B (up 30% YoY), marking the first sequential Q1 growth after historically lighter post-Q4 periods. Strong execution in AI capacity delivery and customer demand noted.

Revenue Highlights

  • Total revenue: $19.3B (+30% YoY); cloud infrastructure now a larger contributor, lifting overall growth 5 points vs. Q4 trailing 12-month basis.
  • Cloud infrastructure revenue: $7.4B (+121% YoY, vs. +93% in Q4); 850 MW AI capacity delivered (nearly 3x Q4 total, 73% of FY2026 full-year delivery).
  • Cloud apps/SaaS: +10% YoY overall; Fusion +14%; industry apps >20%; Oracle Health accelerated; NetSuite growth moderated due to prior slower cycles.
  • RPO: +$26B from Q4; majority via prepay/BYO hardware (no incremental Oracle CapEx); ~50% expected to convert to revenue over next 36 months, supporting FY2028+ growth.

Profitability

  • Non-GAAP operating income: $8.2B (+31% YoY); operating margin ~42% (flat YoY) despite gross margin pressure from data center ramp and infrastructure mix shift.
  • Non-GAAP EPS: $1.92 (+30% YoY).
  • Record operating cash flow: $23B; CapEx $28B led to -$5B free cash flow (-$18B net of prepayments); FY CapEx guidance $90-95B total / ≤$70B net cash.

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Operator: Good day, everyone, and welcome to the Oracle Corporation First quarter fiscal year 27 earnings call. Just a reminder that this call is being recorded. If you have a question today, please press 1 on your telephone keypad. Please limit yourself to 1 question. I would now like to hand the conference over to Mr. Ken Bond, head of investor relations. Please go ahead, sir. Ken Bond: Thank you, Maria, and good afternoon, everyone, and welcome to Oracle's first quarter fiscal year 2027 earnings conference call. On the call today are Chief Executive Officer, Mike Sicilia, Chief Executive Officer; Clayton Magouyrk and chief financial officer, Hilary Barbara Maxson. A copy of the press release including financial results tables and supplemental financial metrics and guidance is now available on our Investor Relations website. Also available on our website is the slide deck that will be used in this call and a GAAP to non GAAP reconciliation. As a reminder, today's discussion will include forward looking statements and we will discuss some important factors relating to our business. These forward looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from the statements being made today. As a result, we caution you against placing undue reliance on these forward looking statements and we encourage you to review our most recent reports, including our 10 k and 10 q and any applicable amendments. And finally, we are not

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