Oracle first-quarter revenue rises 30% to $19.3 billion on cloud demand

Oracle Corporation (ORCL) said Wednesday in a filing that total quarterly revenues increased 30% to $19.3 billion for the fiscal first quarter ended August 31, 2026. The company reported strong execution in its infrastructure business, alongside a cash dividend declaration for common and preferred stockholders.

Key takeaways

• Total quarterly revenues increased 30% to $19.3 billion.
• Cloud infrastructure revenue grew 121% to $7.4 billion.
• Remaining performance obligations increased to $664 billion.
• GAAP earnings per share rose 55% to $1.56.

First-quarter results

Here's how the company did:

• Total revenues were $19.3 billion, up 30%.
• Cloud revenues reached $11.6 billion, up 62%.
• Cloud Infrastructure (IaaS) revenue reached $7.4 billion, up 121%.
• Cloud Applications (SaaS) revenue reached $4.2 billion, up 10%.
• Software revenues were $5.5 billion, down 3%.
• Services revenues were $1.4 billion, up 5%.
• Hardware revenues were $700 million, up 15%.

Oracle generated GAAP operating income of $6.7 billion, up 57%, and non-GAAP operating income of $8.2 billion, up 31%. GAAP net income available to common shareholders reached $4.7 billion, up 60%, and non-GAAP net income available to common shareholders grew to $5.8 billion, up 34%. GAAP earnings per share increased to $1.56, up 55%, while non-GAAP earnings per share climbed to $1.92, up 30%. Operating cash flow reached a record $1.9 billion, while free cash flow was negative $5.4 billion due to capital investments.

Backlog and capital investment

Customer demand for AI Cloud Training and Inferencing Services grew faster than supply. Oracle booked more than $30 billion of additional AI cloud contracts in the first quarter, increasing its remaining performance obligations by $209 billion year-over-year to $664 billion. The company delivered more than 300,000 GPUs to its AI cloud customers during the period and delivered 850MW of additional datacenter capacity.

During the quarter, Oracle successfully completed the sale of $20 billion of common stock through an At-the-Market equity program.

Guidance and dividends

Oracle provided forward-looking guidance for the second quarter of fiscal 2027, expecting total revenues to grow between 30% and 34%, and total cloud revenue to grow between 64% and 70% in constant currency. Non-GAAP earnings per share are expected to be between $1.83 and $1.91 in constant currency. For the full fiscal year 2027, the company expects total revenue to be at least $90 billion and non-GAAP EPS to be at $8.10.

The board of directors declared a cash dividend of $1,625 per share of outstanding Mandatory Convertible Preferred Stock, payable on October 15, 2026, to stockholders of record as of October 1, 2026. The board also declared a quarterly cash dividend of $0.50 per share of outstanding common stock, payable on October 23, 2026, to stockholders of record as of October 9, 2026.

Why it matters

Cloud infrastructure adoption, particularly for artificial intelligence workloads, continues to drive top-line expansion for the enterprise software provider. The massive increase in remaining performance obligations and capital expenditures reflects aggressive datacenter expansion to meet enterprise demand, while capital markets activity helps fund the buildout.

By the numbers

What happens next

The company will hold a conference call and webcast to discuss the results. The common stock dividend is scheduled for payment on October 23, 2026, following the October 9, 2026 record date.