Oracle said on September 10, 2026 that it booked more than $30 billion of additional AI cloud contracts in its first quarter of fiscal 2027. That lifted its remaining performance obligations to $664 billion, up $209 billion year over year investor.oracle.com. The same release said "Based on the structuring of those new contracts, the Company confirms there is no incremental impact on its plans to raise capital." It also disclosed that Oracle had sold $20 billion of common stock (before commissions) through an at-the-market (ATM) equity program during the quarter investor.oracle.com.
Oracle put free cash flow for the quarter at negative $5 billion sec.gov. CNBC reported it as negative $5.4 billion, against negative $362 million a year earlier, and put Oracle's debt at $125 billion cnbc.com. Revenue rose 30% to $19.3 billion. Oracle said it now expects fiscal 2027 revenue of at least $90 billion and non-GAAP EPS of $8.10 sec.gov.
Customers fund the new bookings; Oracle's capex plan is unchanged
ERP Today, a trade publication covering enterprise software, reported remarks on the prepayment structures from Oracle's CFO, Hilary Maxson. She said the vast majority of the new contracts came through prepayment, bring-your-own-hardware or similar structures that will not require incremental capital from Oracle. The same outlet reported that co-CEO Clay Magouyrk argued Oracle's capex should now be considered decoupled from how fast the business can grow erp.today. It also reported three figures. RPO rose $26 billion from the $638 billion Oracle reported in June. Quarterly capital expenditure was $28.5 billion. Full-year capex guidance was unchanged at $90 billion to $95 billion erp.today.
Operating cash flow of $23 billion, up 184% investor.oracle.com, less that capex figure leaves free cash flow of negative $5.4 billion, the figure in the release's own table sec.gov. That reconciles with CNBC's number and with the release's rounded one. ERP Today reported that Oracle announced a $45 billion to $50 billion capital raise in February erp.today. Oracle's release describes the ATM sale as part of its previously disclosed capital investment program investor.oracle.com. The same table shows $11.4 billion of customer prepayments funding capital expenditures this quarter, for a net cash outlay of $18.0 billion, and the cash-flow statement counts those prepayments inside operating cash flow sec.gov. Our read is that customer-funded structures already carried about two-fifths of this quarter's capex, and that the rest was still financed partly with new equity.
Conversion runs at the speed of delivered megawatts
| Segment | Q1 FY27 revenue | Year-over-year change |
|---|---|---|
| Total | $19.3B | +30% |
| Cloud (IaaS + SaaS) | $11.6B | +62% |
| Cloud infrastructure (IaaS) | $7.4B | +121% |
| Cloud applications (SaaS) | $4.2B | +10% |
| Software | $5.5B | –3% |
| Services | $1.4B | +5% |
| Hardware | $0.8B | +15% |
Source: Oracle Q1 FY27 results release investor.oracle.com.
Oracle said it delivered 850MW of additional datacenter capacity and, since the end of Q4, more than 300,000 GPUs to AI cloud customers. It put that at almost triple the capacity delivered in Q4 FY26 investor.oracle.com. ERP Today reported GPU utilisation of 97.9%. It also reported that capacity up for renewal was resold at a 20% premium, even though most of that equipment is four years or older erp.today.
That puts roughly nine-tenths of the quarter's growth in infrastructure, the segment that consumes the capex. Software, the segment that does not, shrank.
Project Jupiter puts a 2028 date on the delivery risk
On September 24, CNBC reported that Oracle had sent a force majeure notice to the developer of Project Jupiter, its New Mexico data center, and that Oracle shares fell more than 3% cnbc.com. CNBC credited Bloomberg with first reporting the news. According to that report, Oracle is looking to delay payment if the campus fails to come online as expected in 2028. The developer is a unit of Blue Owl Capital cnbc.com.
The site has faced local opposition ahead of the midterm elections, concerns from environmental groups and delays to a natural gas pipeline meant to fuel it, CNBC reported cnbc.com. Bloom Energy is slated to power the more than 2.4-gigawatt facility with fuel cells, and its shares fell 3%. CNBC cited the Financial Times as reporting that $18 billion of Oracle debt tied to the site is trading at stressed levels cnbc.com.
Oracle told CNBC that "Project Jupiter remains on our planned schedule." Blue Owl said: "This notice does not change the financial commitments to this multi-year project" cnbc.com. On the September 10 earnings call, Magouyrk told analysts the project would not affect Oracle's fiscal 2027 revenue or earnings guidance cnbc.com. D.A. Davidson analyst Gil Luria said the site is unlikely to be cancelled, according to a CNBC headline cnbc.com.
Citi analysts reiterated a buy rating after the results. They called Oracle's outlook "modest" and said the quarter "cleared the runway" for its upcoming investor day cnbc.com. Oracle closed at $137.10 on September 25, 2026, against a 52-week high of $322.54 on October 16, 2025 cnbc.com.