Overview
- Oracle reported results Friday that beat estimates, posting $19.35 billion in revenue and $1.92 in adjusted EPS driven by rapid cloud growth.
- Cloud infrastructure revenue more than doubled to $7.4 billion and the company added 850 megawatts of data center capacity while delivering over 300,000 GPUs to customers.
- Remaining performance obligations, the company’s contracted but unrecognized revenue often called the backlog, rose to $664 billion and included more than $30 billion in new AI cloud contracts this quarter.
- Capital spending surged to about $28.5 billion for the quarter, turning free cash flow negative and prompting debt and at‑the‑market equity raises to fund the buildout.
- Investors pushed the stock higher on the beat but analysts warn the business now hinges on converting the concentrated backlog to revenue and on execution and financing at upcoming Investor Day and AI World events.