Oracle reports $5.396 billion in negative free cash flow for Q1 FY2027

Oracle reported negative free cash flow of $5.396 billion for Q1 FY2027 in results released September 10, 2026. The quarter, which ended August 31, brought in $23.103 billion in operating cash flow, while capital expenditures reached $28.499 billion. Oracle attributed the deficit to investment supporting growth in its Cloud Infrastructure business.

Oracle’s Q1 FY2027 cash-flow figures

Free cash flow subtracts capital expenditures from operating cash flow. For Oracle, the calculation was $23.103 billion − $28.499 billion = −$5.396 billion for the three months ended August 31, 2026.

That negative result does not mean operating cash flow was negative: it was positive, but fell short of the quarter’s capital spending. Oracle reported total revenue of $19.345 billion, up 30% year over year, and Cloud Infrastructure revenue of $7.388 billion, up 121% year over year in U.S. dollars.

What Oracle’s FY2027 financing expectation includes

On June 10, 2026, Oracle said it expected to raise approximately $40 billion through debt and equity financing during FY2027. That total includes the previously announced $20 billion at-the-market (ATM) common-stock issuance; it is not a separate amount on top of the ATM sale.

Oracle reported completing that $20 billion stock sale during Q1 FY2027. Its cash-flow statement records $19.909 billion in net proceeds after issuance costs, a different figure from the gross sale amount.

Cloud growth and contracted work in context

Oracle reported $664 billion in remaining performance obligations (RPO) at the end of Q1 FY2027, up $209 billion year over year. RPO represents contracted obligations not yet recognized as revenue; it is not cash already collected. Oracle also said it booked more than $30 billion in additional AI cloud contracts during the quarter and delivered an additional 850 megawatts of data-center capacity.

The figures put the cash-flow result alongside the scale of Oracle’s cloud growth and infrastructure buildout, without determining how long the deficit will last or what returns that investment will generate.