Oracle's quarterly revenue beats estimates as AI boom drives cloud demand

Oracle exceeded Wall Street's quarterly revenue expectations on September 10, with strong demand for its cloud computing services driving the surge. The AI boom is boosting the cloud market, according to the tech giant. Oracle's revenue for the first fiscal quarter reached $19.3 billion, surpassing analysts' average estimate of $19.14 billion.

The company's revenue backlog increased to $664 billion at the end of the quarter, up from $638 billion in the previous period. Oracle's finance chief, Hilary Maxson, noted that the majority of the newly contracted revenue did not require significant cash outlays for hardware, as most orders were prepaid or brought in via existing hardware.

Despite concerns over rising capital spending and Oracle's Stargate project facing delays, analysts expect the company's revenue to accelerate as it expands its data center footprint. Oracle had invested heavily in data centers, which have borne fruit in securing enterprise contracts. The company forecast adjusted earnings per share of $8.10 for fiscal 2027, closely aligning with market expectations.