Oracle raises full year profit guidance, stock rises after hours

Oracle has raised its full year profit guidance and saw a 6.9% rise in its shares after hours on Thursday. The company reported better-than-expected earnings for its fiscal Q1 2027, earning $1.92 per share on adjusted basis with revenue of $19.35 billion, surpassing analyst estimates of $1.73 per share on $19.13 billion in revenue.

Oracle's cloud computing infrastructure, particularly its Oracle Cloud Infrastructure (OCI) unit, has been a focus as investors worry about the impact of artificial intelligence on its core business. The company booked more than $30 billion of additional AI cloud contracts in the quarter, pushing its remaining performance obligations to $664 billion.

Oracle's capital expenditures for fiscal 2027 have been forecasted at up to $95 billion, with negative free cash flow for six straight quarters. Despite the concerns, Oracle expects its Q2 adjusted earnings per share to range between $1.83 and $1.91 on 30% to 34% revenue growth. For the full fiscal year 2027, the company now forecasts adjusted earnings per share of $8.10 on revenue of at least $90 billion.