Oracle expands “AI clouds”: revenue grew by 21 percent

Oracle has released its financial quarterly report. The company's revenue and profit exceeded analyst expectations, and the annual profit forecast was also raised. Despite this, company shares fell by nearly 10 percent in trading amid plans to raise new capital to expand AI infrastructure. This is reported by Ixbt.com .

During the reporting period, Oracle's revenue grew by 21 percent compared to the same period last year, reaching $19.18 billion. Net profit rose from $3.43 billion last year to $4.22 billion. The company maintained its revenue forecast for fiscal year 2027 at $90 billion but raised the expected earnings per share to $8.05.

The company plans to raise nearly $40 billion through debt and equity issuance to develop AI infrastructure. Capital expenditures increased by 162 percent, reaching $55.7 billion. Investors are expressing concerns about the financial stability of such a massive growth model. The cloud services division grew by 47 percent to $9.91 billion, while the cloud infrastructure segment reached $5.8 billion with 93 percent growth.

Special attention was paid to the RPO (Remaining Performance Obligation) metric, which grew by 363 percent to $638 billion. According to Bank of America analysis, more than half of this amount comes from contracts with OpenAI. Oracle customers making prepayments for GPU resources or providing their own equipment helps reduce the company's personal costs in building data centers.