Oracle's quarterly revenue beats estimates as AI boom drives cloud demand

Oracle's revenue backlog stood at $664 billion at the end of the quarter, up from $638 billion in the prior three months, while analysts estimated $639.89 billion, according to data from Visible Alpha.

Total revenue rose 30% to $19.3 billion in the company's first fiscal quarter, compared with analysts' average estimate of $19.14 billion, according to data compiled by LSEG.

The company expects adjusted earnings per share of $8.10 for fiscal 2027, compared with its prior forecast of $8.05. Analysts on average expect annual profit of $8.07 per share. It forecast revenue of at least $90 billion for fiscal 2027.

Sept. 10 (Reuters) - Oracle ORCL.N topped Wall Street expectations for first-quarter revenue on Thursday and lifted its annual profit forecast, boosted by strong demand for its cloud computing services from surging enterprise spending on AI.

The upbeat report indicates that Oracle's heavy investment in data centers is bearing fruit, helping it secure more enterprise contracts.

Oracle's stock has taken a beating this year on growing investor concerns over soaring capital expenditure that has pressured its free cash flow. In July, S&P Global downgraded Oracle's credit rating citing weak cash flow and rising business risk.

Still, analysts expect Oracle's revenue to accelerate sharply as it expands its data center footprint. The company said it brought 850 megawatts of capacity online in the June-August quarter.