Oracle's stock jumps 7% on earnings beat as cloud infrastructure revenue more than doubles

Oracle shares jumped 7% in extended trading on Thursday after the software vendor issued stronger-than-expected quarterly results.

Here's how the company performed relative to LSEG consensus:

• Earnings per share: $1.92 adjusted vs. $1.74 expected
• Revenue: $19.35 billion vs. $19.14 billion expected

Oracle's revenue grew 30% year over year in the fiscal first quarter, which ended on Aug. 31, according to a statement. Net income of $4.68 billion, or $1.56 per share, was up from $2.93 billion, or $1.01 per share, a year ago.

For the fiscal second quarter, Oracle called for $1.85 to $1.93 in adjusted earnings per share, with revenue growth between 30% and 34%. Analysts surveyed by LSEG were looking for $1.89 in adjusted earnings per share, with $21.20 billion in revenue, which would indicate 32% growth.

Much of Oracle's expansion is tied to data center growth, as the company tries to become a bigger player in the artificial intelligence boom. But Oracle has a weaker cash position than hyperscaler competitors and a lower credit rating. Free cash flow has been negative since last year, and the company now sits on $125 billion in debt.

During the quarter, the company said it delivered 850 megawatts of data center capacity.

Oracle shares have dropped 22% this year as of Thursday's close, while the S&P 500 has gained roughly 11%.

Cloud revenue soared 62% in the quarter to $11.6 billion, topping the $11.51 billion consensus among analysts polled by StreetAccount. Revenue from cloud infrastructure more than doubled to $7.4 billion, beating the $7.09 billion consensus estimate.

Oracle's software category contributed $5.5 billion in revenue, down 3% and lower than StreetAccount's $5.61 billion consensus.

For the 2027 fiscal year, Oracle now sees $8.10 in adjusted earnings per share on at least $90 billion in revenue. The LSEG consensus called for $8.07 earnings per share and $89.76 billion in revenue.

At the end of the quarter Oracle's remaining performance obligations stood at $664 billion, above StreetAccount's $630.6 billion consensus. The sum includes contracted but unrecognized revenue, deferred revenue and uncollected invoices. New AI contracts won't have any impact on Oracle's plans to raise capital, according to the statement.

During the quarter, Oracle announced AI agents for human resources teams and obtained a Pentagon contract worth up to $7 billion over a decade.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

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