ORCL 10-Q filed 2026-09-11 | Key takeaways

Cloud infrastructure revenue more than doubled (+121% YoY) to $7,388 million, driving the overall cloud segment to $11,607 million (+62% YoY).

Q1 FY2027 revenue of $19,345 million was supported by $11.4 billion of customer prepayments with a significant financing component; no comparable prepayments were received in Q1 FY2026.

Operating cash flow of $23,103 million (+184% YoY) only partially offset capex of $28,499 million (+235% YoY), with the gap funded primarily by the ATM Program and customer prepayments.

Oracle fully utilized its $20 billion ATM Program during the quarter, issuing 141 million common shares for net proceeds of $19.9 billion.

Remaining performance obligations of $664 billion (+46% YoY from $455 billion) underscore the backlog behind future cloud infrastructure revenue.

TikTok USDS Joint Venture LLC is a new equity-method investment representing 15% of non-marketable equity investments as of August 31, 2026.

The 2026 Restructuring Plan total estimated cost was raised to $2.1 billion, with management adding approximately $700 million subsequent to August 31, 2026.

During the first quarter of fiscal 2027, Oracle received $11.4 billion of prepayments from customers that included a significant financing component; no such prepayments were received during the first quarter of fiscal 2026.

The ATM Program was fully utilized in Q1 FY2027 with the issuance of 141 million shares for net proceeds of $19.9 billion (originally established February 2, 2026, amended June 23, 2026, with up to $20 billion aggregate sales proceeds).

The substantial majority of Oracle's non-marketable investments as of August 31, 2026 were with TikTok USDS Joint Venture LLC, an equity method investee in which Oracle holds a 15% ownership interest (non-marketable investments totaled $2.4B).

Capital expenditures rose to $28.5B in Q1 FY2027 from $8.5B in Q1 FY2026 (+235%); property, plant and equipment net increased to $127.8B from $100.0B at May 31, 2026; construction in progress totaled $48.5B; $288B of additional lease commitments for data centers were not yet reflected on the balance sheet.

The 2026 Restructuring Plan total estimated cost was raised to $2.1B as of August 31, 2026 ($2.103B total expected program costs), and management supplemented the plan by approximately $700M subsequent to August 31, 2026. Restructuring expense in Q1 FY2027 was $165M, down from $402M in Q1 FY2026.

On February 3, 2026, a putative securities class action was filed in the U.S. District Court for the District of Delaware; an amended class action complaint was filed July 14, 2026 against Oracle, its CTO, one CEO, two other executives and one board member alleging false/misleading statements regarding Oracle's cloud infrastructure business.