ORCL · Q1 FY2027
ORACLE CORP Q1 FY2027 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $19.345B | $14.926B (yr ago) | Beat |
| EPS | $1.56 GAAP diluted | $1.01 (yr ago) | Beat |
| Free Cash Flow | -$5.396B | -$0.362B (yr ago) | Miss |
| Gross Margin | Not disclosed | Not disclosed (yr ago) | Miss |
| Operating Margin | 35.0% GAAP | 29.0% (yr ago) | Beat |
What changed
Revenue increased 30.0% year over year as cloud infrastructure revenue rose 121.0%, lifting GAAP operating income 57.0% and GAAP operating margin to 35.0%. The trade-off was $28.499 billion of capital expenditure, negative $5.396 billion of free cash flow and a $20 billion equity issuance to help fund infrastructure expansion.
Impact on the investment thesis
There was no prior fair value to revise. We initiate a $154 base-case fair value: stronger cloud growth and the $90 billion FY2027 revenue outlook are offset by heavy capital intensity, dilution and limited current free-cash-flow support.