Oracle jumps 7% after fiscal Q1 2027 beat, cites more than $30B in new AI cloud contracts

Oracle's fiscal Q1 2027 results sparked a sharp reversal in the stock after a weak regular session. Shares fell 5% during market hours, then rose 7% in after-hours trading following the release. Revenue totaled $19.3 billion to $19.45 billion, up 30% from a year earlier and above analysts' roughly $19.13 billion estimate. Adjusted earnings per share were $1.92, also ahead of expectations. The bigger focus for investors was deal flow: Oracle said it signed more than $30 billion in new AI cloud contracts during the quarter. Cloud infrastructure led the performance. Total cloud revenue climbed 62% year over year to $11.6 billion. Infrastructure-as-a-Service (IaaS) revenue reached $7.4 billion, representing 121% growth. Oracle added 850 megawatts of new data center capacity in the quarter. Those agreements lifted remaining performance obligations to $664 billion, up $209 billion from the prior quarter. Oracle raised its full-year fiscal 2027 revenue outlook to at least $90 billion and projected adjusted EPS of $8.10. For fiscal Q2, the company guided adjusted EPS of $1.85 to $1.93. Oracle posted negative free cash flow for the quarter, citing the scale of spending on AI infrastructure. The company said the new AI contracts are not expected to require near-term changes to its capital-raising strategy.