Oracle’s remaining performance obligations reached $664 billion at the end of the first quarter of fiscal 2027, as demand for artificial intelligence infrastructure drives a sharp acceleration in its cloud business.
The figure rose by $209 billion year over year. Oracle also signed more than $30 billion in new AI cloud contracts during the quarter, while cloud infrastructure revenue increased 121% to $7.4 billion. Total revenue grew 30% to $19.3 billion, and cloud services revenue rose 62% to $11.6 billion.
The company delivered 850 megawatts of additional data-center capacity during the quarter and said more than 300,000 GPUs had been delivered to AI infrastructure customers since the previous quarter. AI infrastructure utilization reached 97.9%.
Oracle expects about half of its current RPO to convert into sales over the next three years. However, fulfilling those contracts will require significant investment. Capital expenditures reached $28.5 billion in the quarter, pushing free cash flow to a deficit of roughly $5.4 billion. Oracle expects full-year capital expenditures of $90 billion to $95 billion.
The company said some new contracts used advance payments or customer-provided hardware, reducing the need for additional financing from Oracle. Its challenge now is turning a large contracted backlog into revenue and cash flow while expanding data centers amid constraints involving power, construction and equipment availability.
Source: EntArabi
