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 compan...