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, lifting remaining performance obligations to $664 billion. The backlog was up $209 billion from a year earlier, according to Oracle’s earnings release.
The after-hours move followed a quarterly revenue beat and an increase in the company’s fiscal 2027 adjusted earnings forecast.
AI cloud contracts lift Oracle’s RPO to $664 billion
Oracle’s contracted-demand measure reached $664 billion after the new AI cloud agreements, providing a large pool of future performance obligations for its cloud business. RPO represents revenue that has not yet been recognised from contracted commitments.
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, Oracle said.
The results place AI-related cloud demand at the centre of Oracle’s latest growth figures, with the sharp RPO increase arriving alongside triple-digit growth in cloud infrastructure revenue.
Oracle shares rise after revenue beat and higher FY2027 earnings 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 nearly 8% gain occurred in extended trading after the earnings release. The updated forecast represents a modest increase, while the reported RPO expansion underscored the scale of cloud demand Oracle has contracted.
850 megawatts of new capacity comes with negative free cash flow
Converting Oracle’s backlog into revenue will require continued expansion of its cloud infrastructure. During the quarter, the company delivered 850 megawatts of additional data-centre capacity.
The 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.
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Source: Crypto Daily