Oracle announced its Q1 FY27 results with strong revenue growth. Total quarterly revenues increased 30% to US$19.3 billion, reflecting strong execution in our infrastructure business, with the delivery of 850MW additional data centre capacity. Cloud revenues (IaaS and SaaS) increased 62% to US$11.6 billion, driven by 121% growth in cloud infrastructure (IaaS), and 10% growth in cloud applications (SaaS). Software revenues were down 3% to US$5.5 billion, reflecting its customers’ continuing migration from on-premises software to the cloud. Services revenues were US$1.4 billion, up 5%, and hardware revenues were US$0.8 billion, up 15%.
Oracle generated Q1 GAAP operating income of US$6.7 billion, up 57%, while non-GAAP operating income rose to US$8.2 billion, up 31%, driven by continued broad-based demand in cloud infrastructure and cloud applications. GAAP net income available to common shareholders reached US$4.7 billion, up 60%, and non-GAAP net income available to common shareholders grew to US$5.8 billion, up 34%. Q1 GAAP earnings per share increased to US$1.56, up 55%, and non-GAAP earnings per share climbed to US$1.92, up 30%.
Oracle’s strong operating income translated to a record Q1 operating cash flow of US$23 billion, up 184%. Free cash flow was negative US$5 billion for Q1 as Oracle continued to execute on investments to support the growth of its cloud infrastructure business.
