Oracle shares jumped after fiscal first-quarter 2027 results topped Wall Street estimates on revenue, earnings and cloud growth. Infrastructure revenue rocketed 121% year-over-year, and the company raised its full-year guidance above $90 billion.
Oracle stock surged 6.3% in pre-open trading after the company reported fiscal first-quarter 2027 results the previous evening that beat Wall Street estimates on nearly every key metric. Total revenue came in at $19.35 billion, up 30% year-over-year and ahead of the $19.13 billion consensus. Adjusted earnings per share of $1.92 handily topped the expected $1.73-$1.75 range.
Cloud infrastructure revenue rockets 121%
The figure that electrified investors was cloud infrastructure revenue, which rocketed 121% year-over-year to $7.4 billion — the ninth consecutive quarter of accelerating growth. GPU utilization ran at 97.9%, signaling that Oracle's data center capacity is essentially sold out. The company also disclosed it had secured roughly $30 billion in new AI-related contracts during the quarter and raised its full-year FY2027 revenue guidance to above $90 billion.
Analysts and options markets braced for a big move
Sentiment heading into the report was cautiously optimistic. Scotiabank had maintained an Outperform rating while trimming its price target, and options markets had priced in a roughly 10% post-earnings swing, reflecting the high stakes of the print. Oracle's 121% cloud infrastructure growth rate outpaced peers in the hyperscaler space, reinforcing its position as a credible AI infrastructure alternative.
Broader market offered a supportive but cautious backdrop
The S&P 500 and Nasdaq both gained around 0.6%, though rising U.S. Treasury yields approaching 5% and a growing probability of a Fed rate hike tempered enthusiasm across rate-sensitive tech names. Together, the earnings beat, accelerating AI-driven cloud demand and the raised outlook gave investors the confidence to bid Oracle shares sharply higher ahead of the opening bell.
Source: Investing.com
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