More from ORCL Q1 2027

Oracle Corporation

ORCL2027 Q1Technology

Financial Performance Summary

Cash flow from operations was a record $23 billion, while $28 billion of CapEx resulted in negative free cash flow of $5 billion and net cash CapEx of $18 billion.
Cloud applications revenue increased 10%, including 14% growth for Fusion and more than 20% growth in industry applications.
Cloud infrastructure revenue was $7.4 billion, up 121% year over year, following 93% growth in Q4.
Non-GAAP EPS increased 30% to $1.92, supported by revenue growth, operating leverage, and lower operating costs.
Non-GAAP operating income rose 31% to $8.2 billion, while non-GAAP operating margin remained approximately flat at 42%.
Q1 total revenue reached a record $19.3 billion, up 30% year over year in U.S. dollars, with sequential growth for the first time in Q1.
Remaining performance obligations increased $26 billion from Q4, with much of the new contracting supported by prepayments or bring-your-own-hardware arrangements.

Oracle Corporation

ORCL2027 Q1Technology

For me, operating margin is probably the ultimate point that we wanna follow.

Hilary Barbara Maxson

CFO, Oracle Corporation

Context

Hilary explained how investors should evaluate gross-margin pressure during the infrastructure ramp. She said gross margin remains an important health indicator for pricing and input-cost management. However, infrastructure naturally carries lower gross margins and lower associated R&D and sales costs than software. She therefore identified operating margin as the more important measure of value creation over time.

Oracle Corporation

ORCL2027 Q1Technology

121% cloud growth

Cloud infrastructure growth accelerated to triple digits

Cloud infrastructure revenue grew 121% in Q1 after growing 93% in Q4, while management expects further acceleration as RPO converts into revenue.

More from ORCL Q1 2027

Oracle Corporation

ORCL2027 Q1Technology

Financial Performance Summary

Cash flow from operations was a record $23 billion, while $28 billion of CapEx resulted in negative free cash flow of $5 billion and net cash CapEx of $18 billion.
Cloud applications revenue increased 10%, including 14% growth for Fusion and more than 20% growth in industry applications.
Cloud infrastructure revenue was $7.4 billion, up 121% year over year, following 93% growth in Q4.
Non-GAAP EPS increased 30% to $1.92, supported by revenue growth, operating leverage, and lower operating costs.
Non-GAAP operating income rose 31% to $8.2 billion, while non-GAAP operating margin remained approximately flat at 42%.
Q1 total revenue reached a record $19.3 billion, up 30% year over year in U.S. dollars, with sequential growth for the first time in Q1.
Remaining performance obligations increased $26 billion from Q4, with much of the new contracting supported by prepayments or bring-your-own-hardware arrangements.