Oracle posts 30% revenue growth fueled by AI cloud demand as debts hits $125 billion

JUST IN: Oracle posts 30% revenue growth as AI cloud demand surges, with cloud infrastructure revenue up 121% year-on-year. Total debt hits $125 billion.

Oracle is growing 30% a year and carrying 125 billion dollars of debt to do it.

Revenue hit 19.35 billion for the quarter, ahead of estimates, and net income jumped 60% to 4.7 billion. The engine is AI. Cloud infrastructure revenue up 121% year on year, and you can see the market trying to make up its mind here, the stock popped at the open, then sank back to flat.

And the shopping list explains why. Another 850 megawatts of data centre capacity delivered, over 300,000 GPUs shipped to customers, and 30 billion dollars in fresh AI cloud contracts booked, with names like Nvidia, Meta and OpenAI on the ledger. Larry Ellison's company says fiscal 2027 revenue will top 90 billion.

But here's the number I can't unsee. Free cash flow was negative 5.4 billion this quarter, versus negative 362 million a year ago. Oracle is buying the AI future on credit, and the stock is still down 20% this year because everyone knows it.

This is Liu Yang, reporting for HIT.