On September 11, Oracle rose 4.37% overnight, trading at $159.63/share, with Turnover of $98,700. The company released its FY2027 first fiscal quarter earnings after the close, delivering results that comprehensively exceeded market expectations.

Oracle reported Q1 adjusted EPS of $1.92, beating the consensus estimate of $1.74 by approximately 10.3%, while revenue came in at $19.35 billion versus expectations of $19.14 billion. The cloud infrastructure segment was the standout performer, with revenue surging 121% year-over-year to $7.4 billion, above the $7.19 billion estimate. AI cloud infrastructure revenue roughly doubled, and Remaining Performance Obligations (RPO) climbed to $664 billion, exceeding expectations. Management noted that customers invoked embedded AI capabilities over 150 million times during the quarter, a 42% sequential increase.

Oracle raised its full-year FY2027 guidance, now expecting adjusted EPS of $8.10 and revenue of at least $90 billion, both above prior guidance and the Street consensus of $8.07 EPS on $89.66 billion in revenue. The CFO indicated approximately half of RPO is expected to convert into actual sales within 36 months. Notably, Q1 free cash flow was negative $5 billion, reflecting the heavy capital expenditure cycle as the company added approximately 850 megawatts of data center capacity during the quarter.

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