Oracle reports Q1 FY27 earnings with $19.3B revenue and a staggering $664B in remaining obligations

Oracle just posted a quarter that would make most enterprise software companies blush. The company reported $19.3 billion in total revenue for its fiscal first quarter of 2027, a 30% jump year-over-year that topped Wall Street expectations of roughly $19.13 billion. The real headline, though, is the backlog. Oracle’s remaining performance obligations, essentially the total value of contracts customers have committed to but haven’t paid for yet, ballooned to $664 billion. That’s up $209 billion from the same period last year. Cloud infrastructure is the engine Oracle’s cloud business did the heavy lifting this quarter, generating $11.6 billion in revenue, a 62% increase over the prior year. Within that, cloud infrastructure services were the standout performer, surging 121% to $7.4 billion. Cloud applications, the more mature and slower-growing segment, added $4.2 billion, up 10%. The company booked more than $30 billion in new AI cloud contracts during the quarter alone. Capital expenditures hit $28.5 billion for the quarter, a pace that, if sustained, would put annual capex north of $100 billion. Oracle reported negative free cash flow of $5.4 billion, a deficit it partially cover...