Oracle rides AI cloud surge to revenue beat despite heavy debt

Oracle beat estimates in Q1 FY2027 with revenue up 30% to $19.3 billion and cloud infrastructure sales up 121% to $7.4 billion, powered by booming AI cloud demand that outpaced supply; adjusted earnings per share rose 30% to $1.92 on expectations of $1.75. The company booked over $30 billion of AI cloud contracts, lifting remaining performance obligations backlog to about $664 billion. While the AI-fueled cloud push underscores Oracle's data-center expansion, investors remain wary of the debt used to fund the build, and the stock trimmed intraday gains after the release.