Oracle shares rose 7% in extended trading on Thursday after the software provider posted better-than-expected quarterly results. Here’s how the company performed relative to the LSEG consensus: Earnings per share: Adjusted $1.92 vs. $1.74 expected Revenue: $19.35 billion vs. $19.14 billion expected Oracle’s revenue grew nearly 30% year over year in the fiscal first quarter, which ended Aug. 31, according to a statement. Net income of $4.68 billion, or $1.56 per share, was up from $2.93 billion, or $1.01 per share, a year ago. Adjusted earnings exclude stock-based compensation expenses. For the fiscal second quarter, Oracle called for between $1.85 and $1.93 in adjusted earnings per share, with revenue growth between 30% and 34%. Analysts surveyed by LSEG expected $1.89 in adjusted earnings per share, with $21.20 billion in revenue, which would indicate growth of 32%. For fiscal 2027, Oracle now forecasts $8.10 in adjusted earnings per share on at least $90 billion in revenue. The LSEG consensus was calling for earnings of $8.07 per share and $89.76 billion in revenue. Full-year capital spending guidance has not changed, Hilary Maxson, Oracle’s chief financial officer, said in a briefing with reporters. Much of Oracle’s expansion is tied to data center growth, as the company tries to become a bigger player in the rise of artificial intelligence. “Nothing we know today would lead us to believe that New Mexico or any of our other sites are behind schedules that we included, for example, in our ’27 fiscal outlook,” Maxson said at the briefing. a weaker cash position than hyperscale competitors and a lower credit rating. The company now has $125 billion in debt, and negative free cash flow was $5.4 billion, compared to negative $362 million a year earlier. Capital spending in the fiscal first quarter soared to $28.5 billion from $8.5 billion last year. During the quarter, the company said it delivered 850 megawatts of data center capacity. Oracle shares have fallen 22% this year through Thursday’s close, while the S&P 500 has gained about 11%. Cloud revenue soared 62% in the quarter to $11.61 billion, beating the consensus of $11.51 billion among analysts surveyed by StreetAccount. Cloud infrastructure revenue more than doubled to $7.4 billion, beating the consensus estimate of $7.09 billion. Oracle’s software category contributed $5.55 billion in revenue, about 3% less than StreetAccount’s $5.61 billion consensus. At the end of the quarter, Oracle’s remaining performance obligations totaled $664 billion, above StreetAccount’s consensus of $630.6 billion. The sum includes contracted but unrecognized revenue, deferred revenue, and uncollected invoices. The new AI contracts will have no impact on Oracle’s plans to raise capital, according to the statement. During the quarter, Oracle announced AI agents for human resources teams and landed a contract with the Pentagon worth up to $7 billion over a decade. Executives will discuss the results with analysts on a conference call beginning at 5 p.m. ET.
