Oracle beats revenue forecasts as AI-fueled cloud demand lifts earnings

Oracle announced first-quarter revenue of $19.3 billion, a 30% rise from the prior year and above the $19.14 billion consensus estimate. The earnings beat prompted the firm to raise its adjusted fiscal-2027 earnings guidance to $8.10 per share, up from $8.05, while maintaining a revenue floor of $90 billion for the year. The performance was driven by robust demand for cloud services as enterprises invest heavily in AI, supported by the company’s recent addition of 850 megawatts of data-center capacity.

Oracle’s backlog grew to $664 billion, exceeding analyst forecasts of $639.89 billion. Nevertheless, the stock remains pressured after a 20% decline this year, reflecting worries about soaring capital outlays, a recent S&P Global credit downgrade, and delays in the Stargate project. Analysts expect continued revenue acceleration as Oracle expands its infrastructure, though cash-flow constraints persist.