EL7.AI
StocksMediumUpdated•Originally published 11 September 2026•Updated 11 September 2026•
2 min read

Oracle OCI Revenue Jumps 121% as New AI Cloud Contracts Top $30 Billion

Key Facts

1IaaS revenue grew 121% to $7.4 billion.
2Total cloud revenue rose 62% to $11.6 billion.
3Oracle booked more than $30 billion of additional AI cloud contracts, and RPO reached $664 billion.
4Total revenue rose 30% to $19.3 billion, while free cash flow was approximately negative $5 billion.
5ORCL closed at $152.81 after reaching $165.99 during the September 11, 2026 session.

Oracle said cloud infrastructure, or IaaS, revenue jumped 121% year over year to $7.4 billion in its fiscal first quarter of 2027, which ended August 31, 2026, marking the clearest sign of acceleration in its cloud business.

Total cloud revenue, combining IaaS and SaaS, rose 62% to $11.6 billion. Within that total, cloud applications, or SaaS, revenue increased 10% to $4.2 billion, showing that infrastructure was the faster growth engine.

Oracle said it booked more than $30 billion of additional AI cloud contracts during the quarter. Those bookings lifted remaining performance obligations, or RPO, to $664 billion, up $209 billion year over year; the new-contract figure should not be confused with total RPO.

The company said demand for AI model training and inferencing services was growing faster than supply. Since the previous quarter ended, Oracle delivered more than 300,000 GPU units to AI cloud customers, nearly 3 times the prior quarter's capacity, and added 850 megawatts of data-center capacity.

Oracle's total revenue rose 30% to $19.3 billion, but free cash flow was approximately negative $5 billion as it continued investing in cloud infrastructure. That contrast highlights the balance investors are watching between converting contracts into revenue and funding the capacity needed to deliver them.

In the market, ORCL closed at $152.81 on September 11, 2026, after reaching $165.99 intraday, according to EL7's internal data. The retreat from the session high keeps attention on execution rather than contract volume alone.

Oracle expects fiscal second-quarter 2027 total revenue to grow between 30% and 34%, with cloud revenue in U.S. dollars rising between 65% and 71%. It also targets annual revenue of at least $90 billion; these forward-looking goals depend on adding capacity, converting RPO into revenue and managing funding needs.