Oracle Books $30 Billion in AI Contracts as Obligations Climb to $664 Billion
Updated
Updated · Yahoo Finance · Sep 12
Oracle Books $30 Billion in AI Contracts as Obligations Climb to $664 Billion
3 articles · Updated · Yahoo Finance · Sep 12
Summary
$30 billion in new AI cloud contracts helped Oracle lift remaining performance obligations to $664 billion in its fiscal first quarter, underscoring still-surging demand for AI infrastructure.
$19.3 billion in quarterly revenue, up 30%, and adjusted EPS of $1.92 beat expectations, while negative free cash flow of $5.4 billion was less severe than analysts' projected $9.56 billion outflow.
$28.5 billion in capital spending was partly offset by $11.36 billion of customer prepayments, and Reuters said most new AI deals will not require proportional new Oracle spending because some customers prepay or bring their own hardware.
Nvidia also benefits because Oracle's backlog points to sustained GPU demand, but the contract structure suggests not every dollar of Oracle backlog translates into equivalent Oracle-funded Nvidia purchases.
The bigger test is whether Oracle can turn its swelling AI backlog into durable cash flow and returns, rather than simply a larger depreciation burden.