Oracle shares surge following strong fiscal Q1 earnings report

Oracle's shares jumped in premarket trading on Friday after it reported 30% revenue growth in its fiscal first quarter, fueled by strong demand for its cloud services and rapid data center expansion.

The enterprise software giant said total first-quarter revenue grew to $19.35 billion, beating LSEG consensus estimates of $19.14 billion. Its net income reached $4.7 billion, up 60% from $2.93 billion in the prior year.

Cloud revenue rose 62% from a year earlier to $11.6 billion, driven by a 121% jump in cloud infrastructure revenue, while cloud application revenue grew 10%.

Oracle was last up 7.6% in premarket trading, but the stock has declined 21.5% since the beginning of the year.

The company delivered an additional 850 megawatts of data center capacity in the quarter. It also booked over $30 billion in further AI cloud contracts, and delivered more than 300,000 GPUs to its AI Cloud customers.

Oracle is expecting second-quarter revenue to grow 30% and 34%, with cloud revenue rising between 64% and 70%. It expects total revenue for the 2027 fiscal year to be at least $90 billion.

Alongside selling its flagship database software, Oracle has taken on more than $100 billion in debt as it funds an expansive buildout of data centers for AI workloads.

The investment is expected to expand capacity for contracted cloud demand from customers including Nvidia, Meta, OpenAI, AMD and xAI.