Oracle shares rally as Q1 FY27 results beat expectations, fueled by a 121% surge in IaaS revenue and a massive $664 billion backlog in remaining performance obligations.
Oracle reported a 60% increase in net income and 30% revenue growth driven by cloud services, indicating strong bullish momentum.
Oracle reported a strong Q1 FY27, with net income surging 60% to $4.68 billion and total revenue climbing 30% to $19.35 billion. The results were driven by a 121% explosion in Cloud Infrastructure (IaaS) revenue and $30 billion in new AI cloud contract bookings.
The growth was primarily driven by the cloud segment, specifically a 121% increase in Cloud Infrastructure (IaaS) revenue and a 10% rise in Cloud Applications (SaaS) revenue.
Oracle is aggressively expanding its AI capabilities, having delivered over 300,000 GPUs to customers and launching new AI-native builders within its Fusion Cloud Applications.