Oracle reports record cloud growth and strong fiscal first-quarter results

Oracle Corp has reported strong fiscal first-quarter results, driven largely by significant growth in its cloud computing and infrastructure divisions. The company’s Japanese subsidiary, Oracle Corp Japan, achieved record-breaking results for the three months ending in August, with net sales rising 13% to 74.86 billion yen and operating profit increasing 22.7% to 25.92 billion yen.

Globally, Oracle reported nearly 30% year-over-year revenue growth, with total cloud revenue rising 62% to $11.61 billion. Cloud infrastructure revenue specifically more than doubled to $7.4 billion, surpassing analyst expectations. The company also noted it closed over $30 billion in additional artificial intelligence contracts during the quarter and secured a potential Pentagon contract worth up to $7 billion over a decade.

Despite the revenue growth, the company’s financial position reflects heavy investment in its cloud expansion. Capital expenditures reached $28.50 billion in the first quarter, contributing to a negative free cash flow of $5.4 billion and a total debt of $125 billion.