Oracle prepares for earnings report amid massive cloud growth expectations

Oracle is set to report its first-quarter fiscal 2027 earnings, with market focus centered on its cloud infrastructure growth and ability to convert massive contracted demand into profit. Analysts are looking for cloud infrastructure revenue growth of approximately 116% year-over-year, while Cloud SaaS business growth is expected to be around 12.8%.

A key metric for investors is the company’s Remaining Performance Obligations (RPO), which reached approximately $638 billion at the end of fiscal 2026, representing a 363% increase from the previous year. This massive backlog supports the narrative of Oracle as a major provider of AI infrastructure.

While the company’s growth story is significant, challenges remain regarding the cost of scaling. Although fiscal 2026 operating cash flow reached a record $32 billion, free cash flow was negative $23.7 billion due to the heavy capital investments required to build out cloud infrastructure.