$638 billion backlog: Oracle guides $11.6 billion cloud revenue for Q1 2027
Oracle expects its first-quarter 2027 revenue to rise 58% to 64% in the cloud segment, supported by a massive $638 billion order backlog and a significant partnership deal with OpenAI.
Oracle heads into its upcoming fiscal quarter guided for substantial growth in its cloud computing division. The company expects total revenue to increase between 27% and 29%, with cloud-specific sales rising 58% to 64%. At the midpoint of that range, quarterly cloud revenue could reach approximately $11.6 billion. Investors will focus on whether the remaining performance obligations can convert into actual cash flow soon. Oracle's outstanding performance obligations, known as its backlog, have climbed to $638 billion, reflecting strong demand for its infrastructure and AI capabilities. A reported agreement with OpenAI involving $300 billion in cloud computing services has heightened market enthusiasm for the partnership. Management noted that heavy investment in data centers and AI technology creates ongoing funding needs while driving rapid expansion in this sector.
