Revenue of $19,345 million beat the API Ninjas estimate of $19,135 million by 1.1%, and non-GAAP EPS of $1.92 beat the $1.74 estimate by 10.3%. Total revenue grew 30% and total cloud revenue 62% to $11,607 million, with Cloud Infrastructure up 121% to $7,388 million.
Remaining performance obligations rose $209 billion year over year to $664 billion, on more than $30 billion of additional AI cloud contracts booked in the quarter and more than 300,000 GPUs delivered since the end of Q4.
For fiscal 2027 the company now expects total revenue of at least $90 billion and non-GAAP EPS of $8.10. Q2 revenue is guided up 30% to 34%, total cloud revenue up 65% to 71% in USD, and non-GAAP EPS to $1.85 to $1.93 in USD.
The one thing that matters: the 184% jump in operating cash flow to $23,103 million is a customer-prepayment story, not an earnings story. $11,363 million of it came from an increase in deferred revenue from prepayments with a significant financing component, a line that was nil a year ago, and free cash flow was still negative $5,396 million.
Key metrics
Metric
Reported
Prior year
Change
Total revenues
$19.3 billion
—
up 30%
Total cloud revenues (IaaS + SaaS)
$11.6 billion
—
up 62%
Cloud Infrastructure (IaaS) revenue
$7.4 billion
—
up 121%
Remaining Performance Obligations (RPO)
$664 billion
—
up $209 billion year-over-year
Operating cash flow
$23 billion
—
up 184%
Free cash flow
negative $5 billion
—
—
Guidance changes
Item
New guidance
Prior guidance
Q2 FY 2027 total revenues
expected to grow between 30% and 34% in constant currency and USD
—
Q2 FY 2027 non-GAAP earnings per share
between $1.83 and $1.91 in constant currency and between $1.85 and $1.93 in USD
—
Q2 FY 2027 total cloud revenue
expected to grow between 64% and 70% in constant currency and between 65% and 71% in USD
—
FY 2027 total revenue
at least $90 billion
—
FY 2027 non-GAAP EPS
$8.10
—
Quality of earnings
Part of the adjusted beat is tax. Non-GAAP EPS of $1.92 against GAAP EPS of $1.56 rests on $1,127 million of stock-based compensation, $202 million of intangible amortization and $94 million of restructuring; the non-GAAP tax rate fell to 16.9% from 20.5% a year ago, while the GAAP rate rose to 15.1% from 14.6%.
The buildout is being funded with equity, and the share count is moving. Oracle sold $20 billion of common stock through an at-the-market program in the quarter, diluted shares rose to 3,000 million from 2,909 million, basic shares to 2,966 million from 2,826 million, and net income available to common shareholders is now struck after $81 million of preferred dividends.
Depreciation has barely begun to catch up with the capacity. Depreciation rose to $3,156 million from $1,351 million while capital expenditures ran at $28,499 million against $8,502 million a year ago, and property, plant and equipment reached $127,845 million from $99,957 million at May 31, 2026.
Gotchas & watch items
Free cash flow was negative $5,396 million as capital expenditures reached $28,499 million, up from $8,502 million a year ago.
Q2 non-GAAP EPS guidance of $1.85 to $1.93 in USD is flat against the $1.92 just reported, and on the company's own footnote represents a decline of 14% to 18% year over year once the Ampere gain in Q2 FY26 is included.
The on-premises base keeps shrinking: software revenue fell 3% to $5,550 million and software license revenue fell 15% to $655 million.