Oracle Says AI Will Strengthen, Not Replace, Its Application Software Business

Oracle co-CEO Mike Sicilia argued on the Q1 FY 2027 earnings call that AI accelerates rather than replaces packaged applications, and promised an "agentic AI accelerator" in October to compress SaaS deployments from years to months.

Oracle's SaaS revenue grew 10 percent, while software license revenue fell 3 percent to $5.5 billion and cloud revenue rose 60 percent to $11.6 billion.

The company also said GPUs coming up for renewal were renewed or resold at a 20 percent premium and that it turned on 850 MW of new datacenter capacity in the quarter.