Oracle disclosed a $664 billion revenue backlog, up $209 billion year over year, in its Q1 FY2027 filing, with cloud infrastructure revenue up 121%. Jim Cramer called the quarter calm and reassuring, but the stock trades 50.63% below its year-ago level and Larry Ellison plans to sell up to $7.5 billion in shares.
Oracle's remaining performance obligations hit $664 billion, an increase of $209 billion year over year, according to the 8-K exhibit the company filed with the SEC on September 10, 2026. The company also said it booked more than $30 billion in new AI cloud contracts during the quarter alone.
Jim Cramer, discussing the results on his September 11, 2026 episode of Mad Money, described his own reading of the backlog's growth as roughly $332 billion in contracted business, up from $99 billion two years ago. His figures characterize the trend rather than restate Oracle's official numbers, which show a larger jump.
What Oracle actually reported
Beyond the backlog, total revenue reached $19.34 billion, up 29.61% year over year. Cloud infrastructure revenue jumped 121% to $7.39 billion, and non-GAAP earnings per share came in at $1.92 against a $1.7391 consensus. Management raised full-year FY2027 revenue guidance to at least $90 billion and set non-GAAP EPS guidance at $8.10.
Timing matters, however. Management said on the call that it expects about half of the RPO to convert into sales over the next 36 months, and that the newest wave of contracts won't affect capital spending or revenue until fiscal 28 or later.
The cost of building capacity
Servicing $664 billion of contracted business carries a price. Capital expenditures reached $28.5 billion in the quarter, free cash flow fell to negative $5.4 billion, and interest expense climbed 55% to $1.4 billion on higher debt. Oracle completed a $20 billion at-the-market equity issuance during the quarter to help fund the buildout.
Management also said GPUs coming up for renewal were renewed or resold at a 20% premium to prior contracts, and that most of the new contracts require little incremental capital from Oracle because they run on prepay or bring-your-own-hardware terms.
Still, ORCL closed at $150.15 on September 11, 2026, down 22.15% year to date and 50.63% below its level a year earlier. Overnight, CNBC reported that Ellison has adopted a trading plan to sell up to $7.5 billion of Oracle stock.
What comes next
Management guided Q2 cloud revenue growth of 65% to 71% in U.S. dollars, a pace investors will watch to see whether the backlog is converting into recognized revenue. Oracle put 850 megawatts of capacity and more than 300,000 GPUs into service in the quarter, with site milestones expected at Abilene, Shackleford, New Mexico, and Wisconsin.
The company also told investors to expect no more than $70 billion in net cash capital expenditures for FY2027, a threshold that would reset the free cash flow outlook if breached. Oracle's investor day in October is expected to add detail on the margin trajectory as the infrastructure buildout continues.
Source: 24/7 Wall St.
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