Oracle stock jumped as much as 7% in after-hours trading Thursday after the database and cloud giant blew past Wall Street's targets for its fiscal first quarter, reporting that revenue from its AI-hungry cloud infrastructure business more than doubled year over year.

The company said total revenue for the quarter ended Aug. 31 rose 30% to $19.35 billion, ahead of the $19.14 billion analysts polled by LSEG had expected. Adjusted earnings came in at $1.92 a share versus a forecast of $1.74. Cloud infrastructure (IaaS) revenue surged 121% to $7.4 billion, while total cloud revenue climbed 62% to $11.6 billion.

Backlog Tops $664 Billion

The headline number for investors was Oracle's remaining performance obligations, a measure of contracted-but-unfulfilled revenue that has become the market's favorite gauge of the AI infrastructure boom. RPO hit a record $664 billion, up $209 billion from a year earlier and ahead of analyst expectations of roughly $640 billion, according to Reuters. The company signed more than $30 billion in new AI cloud contracts during the quarter and brought 850 megawatts of new data center capacity online. Oracle raised its full-year fiscal 2027 guidance to at least $90 billion in revenue and $8.10 in adjusted earnings per share, both slightly above consensus.

Shares closed the regular session Thursday at $152.94 before rallying toward roughly $159-$164 in extended trading, according to CNBC's reporting via Investing.com. Even with the pop, Oracle stock remains down roughly 20% for the year, reflecting investor unease over how the company is paying for its data center build-out.

That unease has real teeth. S&P Global Ratings downgraded Oracle's long-term credit rating a notch to BBB- in July, just one step above junk status, citing the company's ballooning capital spending and its concentrated exposure to OpenAI, which accounts for a large share of Oracle's backlog. Operating cash flow rose 184% to $23.1 billion this quarter, but capital expenditures jumped to $28.5 billion from $8.5 billion a year earlier as Oracle races to build out GPU capacity, which it said is running at 97.9% utilization.

Analysts largely stayed bullish. A Morgan Stanley note ahead of the print had flagged potential cloud-revenue growth in the 58%-65% range, a bar Oracle's 62% cloud growth and 121% infrastructure growth cleared. The results echo Oracle's June disclosure that RPO had already reached $638 billion, up 363% year over year, cementing the company's turn from a legacy software vendor into one of the largest AI infrastructure landlords behind OpenAI, xAI, Meta, Nvidia and AMD.

The open question, flagged repeatedly by credit analysts, is conversion: Oracle expects only about 12% of its RPO to convert to revenue in the next 12 months, meaning the backlog's payoff — and the debt taken on to build toward it — will play out over years, not quarters. Oracle guided for second-quarter revenue growth of 30% to 34% and will next report results in December, when investors will be watching whether cash burn narrows as new data centers start generating billable revenue.