Oracle delivered more than 300,000 GPUs and 850MW of data center capacity to customers during Q1 of fiscal year 2027.. Revealed during the company’s earnings call on September 10, 2026, co-CEO Clay Magouyrk noted that this was “almost three times what we delivered in all of Q4, and 73 percent of the total capacity delivered last fiscal year.”. – Oracle.
Oracle’s cloud Infrastructure as a Service revenue was up 121 percent Year-on-Year (YoY), bringing in $7.4 billion, by far the fastest-growing business offering. This beat the previous quarter’s growth rate of 93 percent. Total revenue for the quarter was $19.3bn, up 30 percent YoY..
Remaining performance obligations (RPO) are also up $209bn YoY to $664bn.. CFO Hilary Maxson noted that the RPO increased $26bn in the last quarter alone, of which the “vast majority” of contracts were “prepay or bring your own hardware or similar mechanic, so will not require incremental capital from Oracle.”.
Magouyrk later expanded: “While there clearly are capital expenditures, it does not require Oracle to go out and find additional cash to do it. Now, the question becomes, well, how do you do that? Well, we have a variety of different models.
Sometimes it’s working with our suppliers, through different financing arrangements that allow us to pay for the capacity as the customers pay us. That’s one mechanism.. “Another mechanism is that a customer says, ‘Hi, I’d like to pay for the hardware, but use your operational ability and your cloud infrastructure technology assets and your data center to go out and actually turn that into an AI cluster.’ It’s a different option.
A third option is that the customer has been able to raise money. Maybe it is a startup, maybe it is an established company, and says, ‘Hi, I would like to pay you upfront as a prepayment,’ and in return, that doesn’t require you to front the cash to go out and spend your dollars on that capex.”.
The company expects FY 2027 capex to be between $90bn and $95bn, significantly less than the other cloud hyperscalers. For example, Amazon Web Services expects to spend some $220 billion for the year (including its retail arm), and Microsoft expects to spend $175bn in FY2027.. According to executives, utilization remains high at 97.9 percent, and of the GPUs that came up for renewal in the quarter, it was “renewed or resold at a 20 percent premium to prior contracts,” while the majority of those GPUs were four years or older..
Magouyrk also revealed that Oracle completed its previously announced $20 billion equity issuance in Q1 2027. Previously, the company said that it was expecting to raise $40 billion in debt and equity in FY2027, though no further reference to the debt was made in the latest earnings call..
Interestingly, during the earnings call, CEO Mike Sicilia revealed: “At AI World in October, we will unveil a new agentic AI accelerator poised to redefine how customers deploy Oracle applications faster, simpler, and at a dramatically lower cost.”. No further details were provided on this, though DCD has contacted the company for more information..
Oracle has consistently denied to DCD that it plans to develop custom chips, however, this seems to suggest that the company could be pivoting on that decision.. Other key performance metrics for the quarter include a net income of $4.7 billion, while free cash flow for the quarter was negative $5bn..
Following the earnings call, Oracle’s shares climbed around six percent in after-market trading.. More in Cloud & Hyperscale. 07 Apr 2026.
14 Jul 2026. More in The Investment & Markets Channel. 03 Jun 2026
