Oracle Reports $664 Billion RPO as Cloud Infrastructure Revenue Rises 121%

Oracle disclosed first-quarter fiscal 2027 results on 10 September for the quarter ended 31 August 2026, reporting rapid growth in cloud infrastructure activity and a substantial backlog of contracted obligations.

The company said it secured more than $30 billion in new AI cloud orders during the quarter. Its remaining performance obligations (RPO) reached $664 billion at quarter-end. Oracle estimates that approximately half of this RPO could be recognised as revenue over the next 36 months; this is an estimate rather than recognised revenue or deployed infrastructure capacity.

Cloud Infrastructure revenue increased 121% year on year to $7.4 billion. Total cloud revenue rose 62% to $11.61 billion, while total company revenue increased 30% to $19.3 billion.

The expansion is carrying a large near-term funding requirement. Oracle reported $28.5 billion of capital expenditure for the quarter, of which $11.36 billion was financed through customer prepayments. Quarterly free cash flow was negative $5.4 billion.

For data-center and energy-infrastructure markets, the scale of Oracle’s RPO and Cloud Infrastructure growth could support expectations of further AI cloud-infrastructure expansion. At the same time, the figures indicate that serving AI workloads can require substantial upfront capital deployment. Customer prepayments could partially mitigate the associated cash-flow burden.

Oracle forecasts total revenue growth of 30% to 34% year on year in the second quarter of fiscal 2027. The disclosed information does not specify the geography, data-center sites, MW/GW capacity, individual projects, or the share of quarterly capital expenditure allocated specifically to data centers.