Oracle's AI infrastructure business is generating unprecedented revenue visibility. The company booked more than $30 billion of additional AI cloud contracts in the first quarter of fiscal 2027, lifting its remaining performance obligations to $664 billion—a jump of $209 billion compared to the prior year.
This expanding backlog matters because it locks in future revenue. Management expects roughly half of the record RPO to convert into sales within the next 36 months, creating a substantial multi-year revenue pipeline. Cloud Infrastructure revenues already jumped 121% year over year to $7.4 billion in the fiscal first quarter, demonstrating that the new contracts are translating into immediate business growth.
Oracle has delivered 850 megawatts of additional data-center capacity and more than 300,000 GPUs since the end of the fiscal fourth quarter. AI infrastructure utilization remained at 97.9%, while GPUs up for renewal were renewed or resold at an average 20% premium. Most of the new RPO came through prepayment or bring-your-own-hardware arrangements, reducing Oracle's incremental funding needs.
The growth requires massive investment. Capital expenditures surged to $28.5 billion in the first quarter of fiscal 2027, and Oracle expects full-year CapEx of approximately $90–$95 billion as it expands data-center capacity. Free cash flow was negative $5 billion in the quarter. The upgraded fiscal 2027 guidance projects total revenues of at least $90 billion, representing 34% year-over-year growth.