RismadarVoice Reporters
September 11, 2026
Oracle has exceeded Wall Street expectations for its latest quarterly results, with strong demand for artificial intelligence-driven cloud services helping to ease investor concerns over the company’s rising spending on AI infrastructure.
The technology giant secured more than $30bn in new AI cloud contracts during its first fiscal quarter, pushing its revenue backlog to $664bn, above analysts’ expectations of $639.89bn.
The company said most of the newly signed contracts would not require significant additional spending on computer chips because many agreements involved customer prepayments, customer-owned hardware or similar arrangements.
Oracle Chief Financial Officer Hilary Maxson said the structure of the deals would allow the company to maintain its annual spending plans while converting more of its backlog into revenue.
The company expects about half of its current backlog to become sales within the next 36 months as demand for cloud computing services continues to rise.
Oracle’s shares gained about 4 per cent in extended trading after the results were announced, reversing some of the losses recorded earlier in the year amid concerns over heavy capital expenditure and pressure on free cash flow.
The company reported negative free cash flow of $5.40bn, significantly lower than analysts’ projected $9.56bn outflow, according to LSEG data.
Oracle recorded capital expenditure of $28.50bn during the quarter, with about $11.36bn covered through customer prepayments.
Revenue for the quarter increased by 30 per cent to $19.3bn, beating market expectations of $19.14bn, while adjusted earnings stood at $1.92 per share compared with analysts’ forecast of $1.74.
The company also raised its fiscal 2027 adjusted earnings forecast to $8.10 per share from $8.05, while projecting annual revenue of at least $90bn.
Oracle’s performance comes as global technology companies continue to expand investments in artificial intelligence infrastructure, with cloud service providers seeking to meet growing enterprise demand for AI-powered solutions.
