Overview
- Oracle said during its Q1 FY2027 earnings call on Friday that it renewed or resold all GPU capacity coming up for renewal at roughly a 20% premium to prior contracts.
- The company reported that most of the renewed GPUs were at least four years old and that GPU utilization reached 97.9% for the quarter.
- Since the prior quarter Oracle delivered about 850 megawatts of AI capacity containing more than 300,000 GPUs and booked over $30 billion in new AI contracts.
- Oracle raised its full‑year FY2027 revenue guidance to at least $90 billion and lifted its non‑GAAP EPS outlook to $8.10 while using customer prepayments and partner structures to manage heavy capex needs.
- The results reinforce Nvidia's claim that older accelerators remain useful and show how shortages of new NVIDIA GPUs, rising memory and packaging costs, and large hyperscaler demand are driving premium pricing and concentrated supplier and customer risks.