Oracle shares jumped nearly 8% in extended trading after the company booked more than $30 billion in new AI cloud contracts, pushing its remaining performance obligations to $664 billion. The move followed a quarterly revenue beat and a raised fiscal 2027 earnings forecast, though the buildout is coming at the cost of billions in negative free cash flow.
Oracle shares rose nearly 8% in extended trading on September 10 after the company reported booking more than $30 billion in additional AI cloud contracts during the first quarter of fiscal 2027. The new deals lifted Oracle's remaining performance obligations (RPO) to $664 billion, up $209 billion from a year earlier.
AI cloud contracts lift Oracle's RPO to $664 billion
RPO represents revenue Oracle has contracted but not yet recognized, and the metric now stands at a record level after the new AI cloud agreements. The company reported first-quarter total revenue of $19.3 billion, up 30% year over year. Cloud infrastructure revenue increased 121% to $7.4 billion.
The results place AI-related cloud demand at the center of Oracle's growth, with the sharp RPO increase arriving alongside triple-digit growth in cloud infrastructure revenue.
Shares rise on revenue beat and higher FY2027 forecast
Investors responded to both the contract figures and the quarterly financial update. Reuters reported that Oracle exceeded quarterly revenue expectations and raised its fiscal 2027 adjusted earnings forecast to $8.10 per share from $8.05.
The updated forecast marks a modest increase, but the reported RPO expansion underscores the scale of cloud demand Oracle has already contracted.
New capacity comes with negative free cash flow
Converting the backlog into revenue will require continued expansion of Oracle's cloud infrastructure. During the quarter, the company delivered 850 megawatts of additional data-center capacity.
That buildout came with approximately $5 billion in negative free cash flow as Oracle continued investing in cloud infrastructure, highlighting the capital demands of serving its expanding AI cloud contract base.
Sources: Oracle, Crypto Daily
Trading involves risk.
Risk Disclaimer
