$ORCL more than doubled its cloud infrastructure revenue. The stock is up 6%

In the first quarter of fiscal year 2027, the company earned $7.4 billion from cloud, a year-over-year growth of 121%. Total revenue grew by 30% to $19.3 billion, and adjusted earnings of $1.92 per share beat the consensus of $1.75.

Growth is driven by building data centers for OpenAI and other customers. Oracle added 850 MW of capacity during the quarter and, thanks to new AI contracts worth over $30 billion, increased its remaining performance obligations (RPO) to $664 billion. For the second quarter, the company expects cloud revenue growth to accelerate to 65 to 71%.

Capital expenditures for the quarter reached $28.5 billion, and free cash flow ended at negative $5.4 billion. Google $GOOG had FCF of -$5.9 billion in the last quarter.

However, Oracle achieved record operating cash flow of $23 billion, almost half of which consists of customer advances for capacity construction. Oracle also completed a $20 billion new share sale, which dilutes existing shareholders.

Adobe $ADBE, on the other hand, is down less than 2% after earnings.

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