Overview
- Oracle reported fiscal first-quarter revenue of $19.3 billion with non-GAAP EPS of $1.92 and cloud infrastructure sales up 121% to $7.4 billion.
- Remaining performance obligations rose to about $664 billion, a $26 billion sequential gain that Oracle says will convert into revenue over the coming years.
- The company completed a $20 billion at-the-market equity issuance during the quarter to help pay for its infrastructure buildout.
- Oracle reiterated very large capex guidance of $90–95 billion for the year with a target of net cash capex at $70 billion or below, a pace that produced negative free cash flow in the quarter.
- Investors remain cautious because Oracle carries roughly $125 billion of debt against about $37 billion of cash and the stock is down about half from its highs even as some analysts, including Barclays, raised price targets and kept positive ratings.