Oracle Boosts 2027 Revenue Forecast to $90 Billion on AI Cloud Growth

Key Takeaways

• Oracle raised its 2027 revenue forecast to $90 billion with adjusted earnings of $8.10 per share.
• First-quarter revenue reached $19.3 billion, exceeding the expected $19.14 billion.
• Oracle added over $30 billion in new AI cloud contracts, totaling a $664 billion backlog.
• Cloud infrastructure sales jumped 121 percent to $7.4 billion driven by AI demand.
• Oracle spent $28.5 billion on capital expenditures, mostly for data center equipment.
• The company added 850 megawatts of data center capacity to support customers like OpenAI.
• Oracle plans to sell up to $25 billion in equity to fund its AI data center expansion.
• NVIDIA partners are building gigawatt-scale DSX AI factories in Australia by 2027.
• Sharon AI is deploying up to 68,000 NVIDIA GPUs using Quantum InfiniBand networking.
• Senator Bernie Sanders proposed legislation to ban AI superintelligence and create a sovereign wealth fund.

Oracle raises 2027 revenue forecast to $90 billion

Oracle updated its financial outlook for the fiscal year ending in May 2027. The company now expects revenue of at least $90 billion and adjusted earnings of $8.10 per share. These numbers are higher than the previous forecast of $90 billion in revenue and $8.05 in earnings. The company believes its investments in cloud technology and artificial intelligence are driving this positive growth.

Oracle revenue beats estimates as AI demand grows

Oracle reported first-quarter revenue of $19.3 billion, which is higher than the expected $19.14 billion. The company added more than $30 billion in new AI cloud contracts, bringing its total backlog to $664 billion. Most of these new orders use customer prepayments or existing hardware, so Oracle does not need to spend extra cash on chips. This approach helped the company burn less cash than analysts predicted, with negative free cash flow of $5.40 billion instead of the expected $9.56 billion.

Oracle cloud sales rise 121 percent on AI demand

Oracle's cloud infrastructure sales jumped 121 percent to $7.4 billion, beating the average analyst estimate of $7.19 billion. The company spent $28.5 billion on capital expenditures, mostly for data center equipment, in the three months ended August 31. Oracle added 850 megawatts of data center capacity to support major projects for customers like OpenAI. Despite previous stock drops due to financing concerns, shares gained about 6 percent in extended trading after the earnings report.

Oracle cloud sales beat estimates as AI demand grows

Oracle's cloud computing business grew faster than expected, with infrastructure sales reaching $7.4 billion. The company signed more than $30 billion in new AI cloud contracts during the quarter. Oracle plans to sell up to $25 billion in equity to help fund its massive data center buildout for artificial intelligence projects. While software revenue fell slightly as customers move to the cloud, overall fiscal first-quarter sales increased 30 percent to $19.3 billion.

Oracle builds $638 billion backlog while stock falls

Oracle has accumulated a $638 billion backlog of contracts, with plans to recognize about 12 percent of that value in the next 12 months. The company is using customer prepayments and arrangements where clients provide their own hardware to manage costs. Oracle projects its fiscal 2027 revenue will exceed $90 billion, representing about 34 percent growth. Although the stock has fallen 17 percent in 2026, analysts expect earnings to strengthen as more backlog converts into actual revenue.

InStep AI hires more sales staff to grow business

InStep AI is expanding its sales team to support future growth and improve market positioning. The company is looking for professionals who can deeply understand customer problems and help shape the company's strategy. This focus on consultative selling aims to strengthen revenue generation and increase customer adoption of their AI solutions. Investors see this hiring as a sign that the business is entering a scaling phase with expectations of future growth.

Research shows AI companions may lower human wellbeing

New research indicates that humans cannot form genuine relationships with AI and trying to do so may make people feel worse. A study surveyed 1,131 U.S. adults and analyzed 464,687 messages from 237 participants to reach these conclusions. People with smaller offline social circles were more likely to use chatbots for companionship and reported higher feelings of loneliness and lower life satisfaction. Psychotherapists explain that AI lacks the ability to provide physical intimacy, reciprocal emotions, or the necessary conflict for personal growth.

Indianapolis man faces charges for AI child exploitation

Luis Martinez, a man in Indianapolis, is facing 10 counts of child exploitation after investigators found around 40,000 images and videos on his devices. The Marion County Prosecutor's Office filed these charges on Tuesday after a tip from xAI led to the discovery of child sexual abuse material created using the Grok AI app. Martinez was arrested during a traffic stop and has been held in the Marion County jail without bond since Thursday. Police have contacted multiple victims, including both adults and children, and encourage others to contact authorities at (317) 262-TIPS.

Bernie Sanders proposes bill to ban AI superintelligence

Senator Bernie Sanders plans to introduce legislation that would ban AI superintelligence and create a sovereign wealth fund with a 50% U.S. stake in AI companies. For this law to pass, it must go through both houses of Congress, which are currently held by Republicans, and be signed by President Donald Trump. Trump has previously supported government investment in AI companies, creating a potential conflict with Sanders' proposed ban.

NVIDIA partners build massive AI processor network in Australia

NVIDIA and Australian partners plan to build gigawatt-scale DSX AI factories to expand local computing access by 2027. Sharon AI is deploying up to 68,000 NVIDIA GPUs using Quantum InfiniBand and Spectrum-X Ethernet networking. CDC currently operates 550 megawatts of capacity with another 800 megawatts under construction using 100% renewable electricity. Other partners like IREN, Megaport, and ResetData are also building high-density infrastructure to support this massive expansion.

Sources

• Oracle’s AI bet pays off as cloud momentum helps drive a rosier forecast
• Oracle's quarterly revenue beats estimates as AI boom drives cloud demand
• Oracle posts cloud sales that top estimates on AI demand
• Oracle’s cloud sales beat estimates as surging AI demand outpaces supply
• Oracle Bets Big on AI With $638 Billion Backlog as Stock Struggles
• InStep AI Expands Sales Team to Support Growth and Market Positioning
• Humans can't have 'genuine' relationships with AI, says psychotherapist—and when some try, new research proves, they feel less well
• Indy man accused of creating children sex videos using artificial intelligence
• 'Slow it down' - Bernie Sanders proposes bill to ban AI superintelligence
• An NVIDIA partner is deploying up to 68,000 AI processors