Oracle's stock edges up on earnings beat as cloud infrastructure revenue more than doubles

Oracle shares moved 4% higher in extended trading on Thursday after the software vendor issued stronger-than-expected quarterly results.

Oracle's revenue grew almost 30% year over year in the fiscal first quarter, which ended on Aug. 31, according to a statement . Net income of $4.68 billion, or $1.56 per share, was up from $2.93 billion, or $1.01 per share, a year ago. Adjusted earnings exclude stock-based compensation expense.

For the fiscal second quarter, Oracle called for $1.85 to $1.93 in adjusted earnings per share, with revenue growth between 30% and 34%. Analysts surveyed by LSEG were looking for $1.89 in adjusted earnings per share, with $21.20 billion in revenue, which would indicate 32% growth.

Much of Oracle's expansion is tied to data center growth, as the company tries to become a bigger player in the artificial intelligence boom. But Oracle has a weaker cash position than hyperscaler competitors and a lower credit rating. The company now sits on $125 billion in debt, and negative free cash flow came in at $5.4 billion, compared with negative $362 million a year earlier.

Capital expenditures in the fiscal first quarter soared to $28.50 billion from $8.50 billion last year. During the quarter, the company said it delivered 850 megawatts of data center capacity.

Oracle shares have dropped 22% this year as of Thursday's close, while the S&P 500 has gained roughly 11%.

Cloud revenue soared 62% in the quarter to $11.61 billion, topping the $11.51 billion consensus among analysts polled by StreetAccount. Revenue from cloud infrastructure more than doubled to $7.4 billion, beating the $7.09 billion consensus estimate.

For the 2027 fiscal year, Oracle now sees $8.10 in adjusted earnings per share on at least $90 billion in revenue. The LSEG consensus called for $8.07 earnings per share and $89.76 billion in revenue. Guidance on capital spending for the full year is unchanged, Hilary Maxson, Oracle's finance chief, said in a briefing with reporters.