❯ Oracle Infrastructure Revenue Jumps 121%, While $28.5 Billion in Capex Funds AI Delivery

Earnings beatAccording to Oracle’s statement and CNBC, Oracle fiscal first-quarter revenue rose nearly 30% to $19.35 billion, above the $19.14 billion consensus. Adjusted earnings of $1.92 a share also topped the $1.74 estimate, and the stock gained about 4% in late trading.

Cloud accelerationOracle said total cloud revenue rose 62% to $11.61 billion, while cloud infrastructure revenue climbed 121% to $7.4 billion, above the $7.09 billion estimate. The company delivered 850 megawatts of data center capacity, signed more than $30 billion of additional AI contracts and ended the quarter with $664 billion in remaining performance obligations.

Cash pressureQuarterly capital spending jumped from $8.5 billion to $28.5 billion, free cash flow was negative $5.4 billion, and debt stood near $125 billion. After raising full-year revenue guidance to at least $90 billion, Oracle must deliver both data centers and affordable financing; a large backlog does not guarantee fast cash collection.

▪ SIGNALOracle’s AI orders are converting into cloud revenue while pulling capex, debt and free cash flow onto the same scorecard.