Oracle Falls 4.7% Despite Ellison Scrapping a 50 Million-Share Sale

Oracle (NYSE:ORCL) reported Q1 2027 results with revenue up 30% to $19.3B, beating estimates. Cloud revenue rose 62% to $11.6B. Shares initially surged 7.8% but closed 2% lower. Analysts have mixed views on margins and cash flow. Backlog reached $664B, with half expected to convert to revenue in 36 months. Free cash flow was negative $5.4B, better than expected.

Oracle reported record revenue of $19.18 billion for Q1 FY2027, with cloud infrastructure sales driving growth. Operating income rose 57.3% to $6.73 billion, and net income increased 62.6% to $4.76 billion. Despite heavy capital expenditures of $28 billion, Oracle's cloud business showed strong performance, with IaaS revenues doubling to $7.4 billion. The company expects continued acceleration in cloud revenue conversion from its $664 billion backlog.

Anthropic CEO Dario Amodei's call to slow AI development has led to market repricing, affecting AI infrastructure stocks. Companies like CoreWeave, Lumentum, and NVIDIA are exposed to potential slowdowns, with some stocks down significantly. Bernstein notes that frontier labs account for over half of cloud commitments, and a slowdown could impact data centers and chipmakers. Tier 1 data center operators like Equinix and Digital Realty may benefit. Q3 earnings from major tech companies will be cr

Oracle Corp (ORCL) stock fell 4.5% after co-founder Larry Ellison canceled a $7.5bn share sale, signaling potential limited upside. The company reported Q1 revenue of $19.345bn and net income of $4.76bn. Rising interest rates and AI regulation concerns also pressured the stock, with Oracle down 0.98% by session end.

Oracle reported Q1 revenue of $19.3B, up 30%, beating expectations, driven by 62% growth in its cloud business. However, interest expenses rose 55% to $1.4B, raising concerns about its high debt and exposure to OpenAI. The stock is down 4.56% and has lost half its value in a year, trading at 23 times trailing profits, similar to the S&P 500 average.

Oracle (ORCL) shares declined Monday after Chairman Larry Ellison canceled a plan to sell up to $7.5 billion worth of his stake, according to the company. The 10b5-1 trading plan was disclosed and then revoked over the weekend, with no shares sold under it.