Oracle reported fiscal first-quarter revenue of $19.35 billion, a 30% year-over-year increase fueled by a 121% surge in cloud infrastructure revenue, sending shares up 6.2% in premarket trading.
Oracle Corporation's shares rose 6.2% in premarket trading on Friday after the enterprise software giant reported fiscal first-quarter revenue of $19.35 billion, a 30% increase from the prior year that exceeded analyst expectations.
The result topped the LSEG consensus estimate of $19.14 billion, driven primarily by surging demand for cloud infrastructure as customers accelerate AI workloads.
Net income reached $4.7 billion in the quarter, up 60% from $2.93 billion in the same period a year earlier.
Cloud revenue was the headline driver, climbing 62% year over year to $11.6 billion. Within that figure, cloud infrastructure revenue soared 121%, while cloud application revenue grew 10%.
Oracle delivered an additional 850 megawatts of data center capacity during the quarter and shipped more than 300,000 GPUs to AI Cloud customers. The company also booked over $30 billion in new AI cloud contracts during the period.
Despite Friday's premarket gains, Oracle's stock has declined 21.5% since the start of the year.
Looking ahead, Oracle said it expects second-quarter revenue growth of between 30% and 34%, with cloud revenue rising between 64% and 70%. The company also projected total revenue for fiscal year 2027 of at least $90 billion.
Oracle has taken on more than $100 billion in debt to fund its data center buildout, which is intended to expand capacity for contracted cloud demand from customers including Nvidia, Meta, OpenAI, AMD, and xAI.
Citi analysts reiterated their Buy rating in a Friday note, saying Oracle had "cleared the runway" for its upcoming Investor Day. "Oracle delivered a solid fiscal first quarter that checked nearly every box and reinforces the bull case heading into Investor Day," the analysts wrote.
The Citi team characterized Oracle's fiscal 2027 outlook as "modest" and its management framework as "conservative," while adding that "given the magnitude of fiscal first-quarter outperformance, we see a favorable setup for upward revisions at Investor Day and AI World."
The results reinforce a pattern emerging across enterprise technology: cloud infrastructure providers with material AI exposure are outpacing peers as corporate customers accelerate capital commitments to AI-ready data center capacity, signaling that the spending cycle driving Oracle's growth remains far from its peak.
Marc Sabatini is a staff writer at TechEchelon covering enterprise software, cybersecurity, and the regulatory beats that shape both. He focuses on the deal flow and policy decisions that move markets.
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