Oracle shares moved higher in premarket trading Friday after the enterprise software maker reported 30% revenue growth for its fiscal first quarter, a jump driven largely by demand for its cloud services and an accelerating data center buildout.
The company said total first-quarter revenue reached $19.35 billion, topping the $19.14 billion consensus estimate tracked by LSEG. Net income came in at $4.7 billion, up 60% from $2.93 billion a year earlier.
The stock was up 6.2% in premarket trading, according to CNBC, though shares have still fallen 21.5% since the start of the year — a reminder that Oracle’s results arrive against a difficult stretch for the stock even as its cloud business expands.
Cloud infrastructure leads the way
Cloud revenue climbed 62% year over year to $11.6 billion. The standout figure was cloud infrastructure revenue, which surged 121%. Cloud application revenue, by contrast, grew a more modest 10%.
Oracle said it delivered an additional 850 megawatts of data center capacity during the quarter, booked more than $30 billion in further AI cloud contracts, and shipped over 300,000 GPUs to its AI Cloud customers.
Those numbers speak to the scale of the bet Oracle has made on AI infrastructure. The company has taken on more than $100 billion in debt to fund an expansive buildout of data centers designed for AI workloads — a spending program meant to serve contracted demand from customers including Nvidia, Meta, OpenAI, AMD and xAI.
Guidance and the road to Investor Day
Looking ahead, Oracle expects second-quarter revenue growth of 30% to 34%, with cloud revenue rising between 64% and 70%. For the 2027 fiscal year, the company projects total revenue of at least $90 billion.
Citi analysts reiterated their Buy rating in a note Friday, writing that Oracle met expectations and “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 said.
The analysts characterized Oracle’s 2027 outlook as “modest” and described management’s framework as “conservative.” They added that given the size of the first-quarter outperformance, they see “a favorable setup for upward revisions at Investor Day and AI World.”
For now, the market’s reaction suggests investors are focused on the cloud growth rather than the debt load or the year-to-date decline. Whether that holds through the company’s investor events — and whether the data center spending continues to convert into contracted revenue — is the question Oracle will have to keep answering.
Source: www.cnbc.com — https://www.cnbc.com/2026/09/11/oracle-stock-q1-earnings-ai-cloud.html
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