Oracle Corporation (ORCL) Q1 2023 Financial Results Summary
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Oracle Corporation (ORCL) Q1 FY27: Record Revenue Growth Driven by Cloud — Strongly Positive
Oracle Corporation (NYSE: ORCL) reported impressive results for the first quarter of fiscal year 2027, showcasing significant growth across its cloud services. Total revenues reached $19.3 billion, marking an increase of $4.5 billion or +30% year-over-year (YoY). This robust performance was primarily driven by a remarkable 62% growth in total cloud revenues, which amounted to $11.6 billion.
Key Financial Metrics
- Total Revenues: $19.3 billion, up $4.5 billion or +30% YoY
- Total Cloud Revenues: $11.6 billion, up $4.4 billion or +62% YoY
- Cloud Infrastructure (IaaS) Revenue: $7.4 billion, up $4.1 billion or +121% YoY
- Cloud Applications (SaaS) Revenue: $4.2 billion, up $0.4 billion or +10% YoY
- GAAP Earnings Per Share (EPS): $1.56, up $0.55 or +55% YoY
- Non-GAAP EPS: $1.92, up $0.44 or +30% YoY
- GAAP Net Income: $4.7 billion, up $1.8 billion or +60% YoY
- Operating Cash Flow: $23 billion, up $15 billion or +184%
- Free Cash Flow: Negative $5 billion
Analyst View
This quarter is undoubtedly a strong positive for shareholders. The substantial revenue growth, particularly in cloud services, indicates Oracle's successful transition to a cloud-centric business model. The 121% increase in Cloud Infrastructure revenue is particularly noteworthy, reflecting the company's ability to capitalize on the growing demand for cloud services. Furthermore, the increase in GAAP net income by 60% and operating cash flow by 184% demonstrates effective cost management and operational efficiency.
However, it is important to note that while Oracle's investments in cloud infrastructure are yielding significant revenue growth, they have also resulted in a negative free cash flow of $5 billion. This indicates that while the company is expanding aggressively, it is also incurring substantial costs in the process. Investors should monitor how these investments translate into long-term profitability.
Dividend and Share Buyback
Oracle's board of directors declared a quarterly cash dividend of $0.50 per share, payable on October 23, 2026, to stockholders of record as of October 9, 2026. This dividend declaration reflects the company's commitment to returning value to shareholders amidst its growth phase.
Guidance for Q2 FY27
Looking ahead, Oracle has provided optimistic guidance for the second quarter of fiscal year 2027:
- Total Revenue Growth: Expected to grow between 30% and 34% in constant currency and USD.
- Total Cloud Revenue Growth: Expected to grow between 64% and 70% in constant currency and between 65% and 71% in USD.
- Non-GAAP EPS: Expected to be between $1.83 and $1.91, representing growth of 19% to 23% in constant currency and 21% to 25% in USD.
This guidance suggests that Oracle anticipates continued strong performance in its cloud business, which should be a focal point for investors in the upcoming quarter.
Forward Catalyst
Investors should closely watch Oracle's execution on its cloud strategy and the impact of its recent investments in AI cloud contracts, which have contributed to a significant increase in Remaining Performance Obligations (RPO) to $664 billion. The demand for AI cloud services is expected to grow, and Oracle's ability to meet this demand will be crucial for sustaining its growth trajectory. Additionally, the upcoming earnings call will provide further insights into management's strategies and expectations for the future, making it a key event for stakeholders.
In summary, Oracle's Q1 FY27 results reflect a strong performance driven by its cloud services, positioning the company favorably for continued growth in the coming quarters.
Here are the extracted financial tables from the provided press release:
ORACLE CORPORATION Q1 FISCAL 2027 FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in millions, except per share data)
Note: All amounts are in millions.
| Three Months Ended | % Increase (Decrease) | % Constant Currency (1) | ||
|---|---|---|---|---|
| August 31, 2026 | August 31, 2025 | |||
| Revenues | ||||
| Cloud | $11,600 | $7,100 | 62% | 61% |
| Software | $5,550 | $5,700 | -3% | -3% |
| Hardware | $774 | $670 | 15% | 16% |
| Services | $1,414 | $1,300 | 5% | 5% |
| Total Revenues | $19,338 | $14,070 | 30% | 30% |
| Operating Expenses | ||||
| Cloud | $6,400 | $3,600 | 77% | 78% |
| Software | $281 | $178 | 58% | 57% |
| Services | $1,052 | $1,000 | -4% | -4% |
| Sales and Marketing | $1,811 | $2,000 | -12% | -12% |
| Research and Development | $2,401 | $2,400 | -4% | -3% |
| General and Administration | $376 | $376 | 0% | 0% |
| Amortization of Intangibles | $202 | $420 | -52% | -52% |
| Restructuring and Other | $94 | $415 | -77% | -77% |
| Total Operating Expenses | $12,626 | $10,527 | 18% | 19% |
| Operating Income | $6,728 | $4,543 | 57% | 57% |
| Interest Expense | $(1,492) | $(923) | 55% | 55% |
| Non-Operating Income | $307 | $73 | 323% | 331% |
| Income Before Tax | $5,607 | $3,420 | 64% | 63% |
| Income Tax Provision | $847 | $500 | 69% | 69% |
| Net Income | $4,760 | $2,927 | 63% | 62% |
| Net Income Available to Common Shareholders | $4,679 | $2,927 | ||
| Earnings Per Share | ||||
| Basic | $1.58 | $1.04 | ||
| Diluted | $1.56 | $1.01 | ||
| Weighted-Average Shares Used to Compute Earnings Per Share | ||||
| Basic | 2,966 | |||
| Diluted | 3,000 |
ORACLE CORPORATION Q1 FISCAL 2027 FINANCIAL RESULTS CONDENSED CONSOLIDATED BALANCE SHEETS ($ in millions)
Note: All amounts are in millions.
| August 31, 2026 | May 31, 2026 | |
|---|---|---|
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $36,369 | $31,289 |
| Marketable securities | $708 | $605 |
| Trade receivables, net | $11,394 | $10,385 |
| Prepaid expenses and other | $7,159 | $4,288 |
| current assets | ||
| Total Current Assets | $55,630 | $46,567 |
| Non-Current Assets: | ||
| Property, plant and equipment, net | $127,845 | $99,957 |
| Operating lease right-of-use assets | $33,967 | $29,690 |
| Goodwill | $62,267 | $62,261 |
| Deferred tax assets | $11,625 | $11,541 |
| Other non-current assets | $11,925 | $11,743 |
| Total Non-Current Assets | $247,629 | $215,192 |
| TOTAL ASSETS | $303,259 | $261,759 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current Liabilities: | ||
| Notes payable and other borrowings, current | $7,625 | $7,199 |
| Accounts payable | $11,063 | $10,977 |
| Accrued compensation and related | $1,760 | $2,225 |
| benefits | ||
| Deferred revenues | $14,686 | $9,916 |
| Other current liabilities | $12,380 | $11,447 |
| Total Current Liabilities | $47,514 | $41,764 |
| Non-Current Liabilities: | ||
| Notes payable and other borrowings, non-current | $117,712 | $122,342 |
| Income taxes payable | $12,060 | $11,771 |
| Operating lease liabilities | $30,594 | $26,648 |
| Other non-current liabilities | $28,183 | $16,178 |
| Total Non-Current Liabilities | $188,549 | $176,939 |
| Stockholders’ Equity | $67,196 | $43,056 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $303,259 | $261,759 |
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