Oracle AI Cloud Growth Lifts Infrastructure Outlook

Oracle’s fiscal Q1 2027 results showed accelerating AI cloud growth. Revenue rose 30% year on year to $19.35 billion, beating estimates of about $19.13 billion. Adjusted earnings per share reached $1.92, while GAAP EPS was $1.56. Oracle cloud revenue increased 62% to $11.6 billion. Cloud infrastructure revenue more than doubled, rising 121% to $7.4 billion, while cloud applications grew 10% to $4.2 billion. Oracle signed more than $30 billion in new AI cloud contracts, pushing remaining performance obligations to a record $664 billion, up $209 billion from a year earlier. The company added 850 megawatts of data-centre capacity, deployed more than 300,000 GPUs and reported 97.9% GPU utilisation. Oracle expects second-quarter cloud revenue to grow 65% to 71% and reaffirmed a fiscal 2027 revenue target of at least $90 billion, while raising its adjusted EPS forecast to $8.10. However, Oracle’s AI expansion remains capital-intensive. Capital expenditure reached about $28.5 billion, leaving free cash flow negative at roughly $5.4 billion. The company also raised $20 billion through an equity sale, creating potential dilution and financing risks. For crypto traders, Oracle’s results reinforce demand for AI infrastructure, data centres and cloud computing, but the impact on cryptocurrencies is indirect. Investors will monitor GPU utilisation, backlog conversion, spending and cash-flow recovery.