Oracle surges 7% after beating earnings expectations with $30B in new AI cloud contracts

Oracle just posted fiscal Q1 2027 numbers that made Wall Street forget about a rough regular trading session. After sliding 5% during market hours, shares popped 7% in after-hours trading once the earnings report landed. Revenue came in between $19.3 billion and $19.45 billion, a 30% jump from the same quarter last year and comfortably above analyst estimates of roughly $19.13 billion.

Adjusted earnings per share hit $1.92, also topping expectations. But the real story isn’t the headline numbers. It’s the $30 billion-plus in new AI cloud contracts that Oracle signed during the quarter.

Cloud infrastructure is doing the heavy lifting

Total cloud revenue surged 62% year-over-year to $11.6 billion. IaaS revenue hit $7.4 billion, representing 121% growth. The company delivered 850 megawatts of new data center capacity during the quarter alone.

All those new contracts pushed Oracle’s remaining performance obligations to $664 billion. That’s a quarter-over-quarter increase of $209 billion.

Raised guidance signals confidence

Oracle raised its full-year revenue guidance to a minimum of $90 billion for fiscal year 2027, with an adjusted EPS forecast of $8.10. For Q2 specifically, the company guided adjusted EPS in the range of $1.85 to $1.93.

Oracle reported negative free cash flow for the quarter due to the sheer scale of its AI infrastructure spending. The company told investors that its new AI contracts wouldn’t force changes to its capital-raising strategy in the near term.

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