Oracle reported a record remaining performance obligation of $664 billion at the end of fiscal Q1 2027, an increase of $209 billion year-over-year. Only 12% of this backlog is expected to be recognized as revenue within the next year.
Total revenue for the quarter reached $19.3 billion, a 30% increase. Cloud infrastructure revenue grew by 121% to $7.4 billion, supported by over $30 billion in new AI-related contracts, 850 megawatts of added data center capacity, and the delivery of 300 000 GPUs.
To support expansion, Oracle confirmed capital expenditure plans of $90 billion to $95 billion for fiscal year 2027. The company reported negative free cash flow of $5.4 billion due to $28.5 billion in capital spending, and raised nearly $20 billion through stock sales.
Market demand for AI infrastructure has benefited hardware suppliers. Dell reported a $95 billion AI server backlog and $60.9 billion in orders. HPE saw its Cloud and AI segment revenue grow by 25%, with total server revenue increasing by 35%.
