Oracle 1QF27 First Take: results remained in a 'go big' mode. OCI revenue growth accelerated again, with YoY growth above 120% this quarter.With OCI's mix rising, its lift to total revenue became more pronounced, reaching 30% this quarter. Capex hit a fresh record at 28.5bn (+73% QoQ), far ahead of Street expectations, pushing net cash outflow further underwater.

The core driver: 0.85GW of compute came online this quarter, slightly below the prior 1GW guide but still a clear acceleration vs. last FY's 1.2GW deployed for the full year.We also infer that recent broad-based increases in cloud rental pricing contributed. Bottom line: AI cloud growth was strong and beat expectations.

However, prior weaknesses persisted. Non-OCI legacy businesses remained sluggish with decelerating growth, and GPM fell sharply and missed estimates given the higher OCI mix and rising depreciation.Overall, the good is quite good, and the bad remains bad. The market is focused on the outperforming AI cloud.

On guidance, management expects revenue growth to further accelerate next quarter and modestly beat the Street. Growth is expected at 68% vs. 61.5% this quarter.Driven primarily by cloud (OCI). However, profit guidance is slightly below consensus. $Oracle(ORCL.US) $ORCL 1X Short ETF(ORCS.US) $ORCL 2X Long ETF(ORCX.US)

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