Oracle reported first quarter revenue of $19.3 billion, exceeding the $19.14 billion estimate, driven by a jump in cloud infrastructure sales to $7.4 billion. Remaining performance obligations reached $664 billion, an increase of $209 billion year over year, after the company booked more than $30 billion in new AI cloud contracts. Adjusted earnings per share were $1.92, beating expectations of $1.74, while shares rose more than 6% in after hours trading.
Quarterly capital expenditures more than tripled year over year to $28.5 billion to support the delivery of 850 megawatts of AI capacity and over 300,000 GPUs since the end of the previous quarter. CEO Clay McGurk noted that demand for AI cloud training and inferencing services continues to grow faster than supply. Most new AI orders utilized prepayments or customer-supplied hardware, which limits the company's need for additional capital raises.
Key sources
- SOURCE@wallstengine“Cloud Infrastructure: $7.4B; +121% YoY”x.com
- SUPPORT@thetranscript_“Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply”x.com
- SUPPORT@thetranscript_“no incremental impact on its plans to raise capital”x.com
- SUPPORT@alphasenseinc“GPU utilization remains extremely high at 97.9%”x.com
- SUPPORT@wallstengine“Oracle’s quarterly capex has more than tripled YoY”x.com
- SUPPORT@shanumathew93“Q1 capex was $28.5B, with ~$18B of net cash outlay”x.com
- SUPPORT@firstsquawk“around 50% of the company’s $664 billion RPO to convert into revenue over the next 36 months”x.com
- SUPPORT@techmeme“ORCL jumps 6%+ after hours”x.com