The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Oracle Corp (NYSE:ORCL, XETRA:ORC) reports fiscal first-quarter 2027 results Thursday afternoon, with Wall Street split between concerns over ballooning capital expenditures and optimism that data center capacity additions could reaccelerate revenue growth.
Bank of America is modeling infrastructure-as-a-service growth of 116% year-over-year and total revenue growth of 28%, up from 21% in the fourth quarter of fiscal 2026.
The bank said it is focused on three areas heading into the report: the pace of data center capacity deployment and remaining performance obligation conversion to revenue, capital expenditures and funding requirements, and trends in the core software business.
BofA expects roughly 1GW of new data center capacity to come online during the quarter. It projects gross margin will decline to 63.8% from 68.7% a year earlier, and operating margin to fall to 40% from 41.8%, as the infrastructure mix continues to weigh on profitability.