Oracle sold $19.9bn of new shares and took $11.4bn of customer prepayments in one quarter to fund $28.5bn of capex — debt $125bn, quarterly interest $1.4bn
Fiscal Q1 2027 (June–August) 10-Q: revenue $19,345m (+30%), net income $4,760m. 141m shares sold through an ATM program for $19.9bn (the full $20bn program), and $11.4bn of prepayments 'with a significant financing component' received from customers (zero a year earlier). Capex rose from $8.5bn to $28.5bn. Remaining performance obligations $664bn (+46%), of which only 13% is recognized within 12 months
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Oracle Form 10-Q for fiscal Q1 2027 (as of August 31, 2026): statement of operations, cash-flow statement (prepayment line, capex), Note 1 'Remaining performance obligations; customer prepayments (significant financing component)', equity note (ATM program $19.9bn), balance sheet (borrowings), MD&A 'Capital expenditures, working capital, recent financing activities'
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Oracle (ORCL) reported revenue of $19,345m for its fiscal first quarter (June–August 2026), up 30% from a year earlier, and net income of $4,760m. The real story of the quarter is in the cash-flow statement and the equity note of the 10-Q filed on September 11: to spend $28.5bn on data centers, the company sold $19.9bn of new shares into the market and collected $11.4bn from customers in advance.
What happened
Oracle (ORCL) sells databases, enterprise software and cloud infrastructure (OCI).
Its quarterly report (10-Q) for fiscal Q1 2027 (June 1–August 31, 2026) shows revenue of $19,345m, up 30% from $14,926m a year earlier, operating income of $6,728m and net income of $4,760m. Remaining performance obligations (RPO) reached $664bn, up 46% from $455bn, which the company attributes to "certain significant cloud contracts".
The other lines of the quarter's cash-flow statement read as follows. Capex $28.5bn ($8.5bn a year earlier). 141m new shares sold through the ATM program for net proceeds of $19.9bn, exhausting the $20bn program set up in February. And $11.4bn of "customer prepayments with a significant financing component" received (zero a year earlier), which entered operating cash flow as an increase in deferred revenue, lifting it to $23.1bn.
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What the numbers mean — for subscribers
We find the numbers that are in the filing but not in the news, and analyze what they mean, how big they are and what to watch next quarter — with the arithmetic and quarterly metrics. Cancel any time.
Does $23.1bn of operating cash flow mean strong results?
Beyond net income of $4,760m plus non-cash charges, the $11.4bn of customer prepayments entered operating cash flow as an increase in deferred revenue. Those prepayments are consideration for future services and carry a financing component with separate interest expense (immaterial in Q1). The relationship between operating cash excluding prepayments and capex is explained in the subscriber section.
How dilutive is $19.9bn of new shares?
141m shares is roughly 5% of the pre-issuance share count (see the 10-Q cover page). The company says proceeds are for general purposes including capex and debt repayment.
When does the $664bn of RPO become revenue?
The company expects about 13% (about $86bn) within 12 months, 37% in months 13–36, 34% in months 37–60 and the remainder thereafter. Fulfilling the contracts requires the data centers to be built first.
Where can I verify these numbers?
On SEC EDGAR: Oracle's fiscal Q1 2027 Form 10-Q (accession 0001193125-26-389274), the cash-flow statement, the RPO and customer-prepayment paragraphs of Note 1, the ATM program in the equity note, borrowings on the balance sheet and the capex section of MD&A.
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Oracle Form 10-Q for fiscal Q1 2027 (as of August 31, 2026): statement of operations, cash-flow statement (prepayment line, capex), Note 1 'Remaining performance obligations; customer prepayments (significant financing component)', equity note (ATM program $19.9bn), balance sheet (borrowings), MD&A 'Capital expenditures, working capital, recent financing activities' · SEC EDGAR · This article is not investment advice. Disclaimer
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