NEW YORK, Sept 10: Oracle has reported stronger than expected quarterly results as surging demand for artificial intelligence services boosts its cloud computing business and drives new enterprise contracts.
The company said it secured more than $30 billion in additional AI cloud contracts during its first fiscal quarter, pushing its total revenue backlog to $664 billion, above analysts’ expectations of about $640 billion.
Oracle’s revenue rose 30 per cent year on year to $19.3 billion, while adjusted earnings reached $1.92 per share, exceeding market expectations of $1.74.
The strong performance comes as companies increasingly expand their spending on cloud infrastructure to support AI applications and services. Oracle’s growing data centre network has helped it attract large enterprise customers seeking computing capacity for advanced AI workloads.
The company also reported negative free cash flow of $5.4 billion for the quarter, considerably better than the $9.56 billion analysts had anticipated.
Capital expenditure stood at $28.5 billion, although Oracle said around $11.36 billion of that amount was offset by customer prepayments. The company maintained its annual capital spending target of between $90 billion and $95 billion.
Oracle has also raised its fiscal 2027 adjusted earnings forecast to $8.10 per share from $8.05 previously. It expects annual revenue to reach at least $90 billion.
The results provided investors with fresh confidence that the company’s heavy investment in AI infrastructure is beginning to translate into stronger business opportunities. Oracle shares gained in after-hours trading following the announcement.