Oracle Corporation (ORCL) reported strong first-quarter fiscal 2027 results on September 27, 2023, with total quarterly revenues climbing 30% year-over-year to $19.3 billion, surpassing Wall Street’s expectations. Cloud revenues surged 62% to $11.6 billion, driven by a 121% increase in cloud infrastructure revenues. Operating cash flow reached a record $23.1 billion, up 184%, while free cash flow remained negative as the company continues to invest heavily in data center capacity.
Management guided for full-year fiscal 2027 capital expenditures between $90 billion and $95 billion, indicating ongoing investments to meet a substantial backlog that reached $664 billion, an increase of $209 billion year-over-year. Despite a 27.9% decline in share price year-to-date, experts suggest maintaining positions, citing Oracle’s cloud infrastructure growth as a solid foundation for future performance amid a competitive landscape dominated by Amazon, Microsoft, and Google.
The Zacks Consensus Estimate for fiscal 2027 earnings stands at $8.10, indicating a 6.16% year-over-year growth, as Oracle continues to expand its partnerships and AI capabilities within its cloud infrastructure ecosystem.
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