Oracle's cloud infrastructure business grew 121% in its fiscal first quarter, pushing total revenue up 30% to a record $19.3 billion for the three months ended August 31, according to results the company released on September 10. Cloud infrastructure revenue reached $7.4 billion, while total cloud revenue, which combines infrastructure and applications, rose 62% to $11.6 billion.
The company reported GAAP earnings per share of $1.56, up 55%, and non-GAAP earnings per share of $1.92, up 30%. GAAP operating income was $6.7 billion, up 57%, and non-GAAP operating income was $8.2 billion, up 31%. GAAP net income available to common shareholders was $4.7 billion, up 60%, while the non-GAAP figure was $5.8 billion, up 34%.
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Oracle's remaining performance obligations, a measure of booked but not yet recognized revenue, rose by $209 billion year over year to $664 billion. The company said it booked more than $30 billion of additional AI cloud contracts during the quarter and delivered more than 300,000 GPUs to AI cloud customers since the end of the prior quarter, nearly triple the capacity delivered in Q4. It also added 850MW of datacenter capacity.
The results extend a run that has reshaped Oracle's business over the past year. In its fiscal third quarter, cloud infrastructure revenue climbed 84% to $4.9 billion and cloud services passed half of total revenue for the first time, while remaining performance obligations stood at $553 billion. The company has been investing heavily to keep pace: operating cash flow hit a record $23 billion in Q1, up 184%, but free cash flow was negative $5 billion as it continued funding cloud infrastructure expansion.
Oracle also completed the sale of $20 billion of common stock through an at-the-market equity program during the quarter, part of its previously disclosed capital investment program. The company said the structure of its new AI contracts means there is no added impact on its capital-raising plans. Its board declared a quarterly cash dividend of $0.50 per share, payable October 23 to stockholders of record as of October 9.
Software revenue fell 3% to $5.5 billion, a decline Oracle attributed to customers moving from on-premises software to the cloud. Hardware revenue rose 15% to $0.8 billion and services revenue rose 5% to $1.4 billion. The quarter's cloud applications segment grew 10% to $4.2 billion, far slower than the infrastructure side.
For the current quarter, Oracle expects total revenue growth of 30% to 34% and cloud revenue growth of 65% to 71% in USD, with non-GAAP earnings per share of $1.85 to $1.93. For the full fiscal year, it now projects at least $90 billion in total revenue and non-GAAP earnings per share of $8.10. The company also used the release to unveil an AI Data Platform that it says automatically builds enterprise ontologies, and what it describes as a fully agentic AI health care management and electronic health records system for hospitals and clinics.
