Oracle's quarterly results surpass expectations, causing shares to increase.
- Oracle reported strong financial performance for the fiscal first quarter, with growth on both the top and bottom lines.
- The stock rose in extended trading.
- Amazon Web Services will receive database services from Oracle.
On Monday, the database software vendor's shares rose 8% in extended trading after it reported fiscal first-quarter results that exceeded Wall Street estimates.
Here's how the company did in comparison with LSEG consensus:
- Earnings per share: $1.39 adjusted vs. $1.32 expected
- Revenue: $13.31 billion vs. $13.23 billion expected
Oracle's revenue grew by 8% to $12.45 billion from $11.61 billion in the previous year, while net income increased to $2.93 billion from $2.42 billion, resulting in earnings per share of $1.03 from 86 cents in the same quarter last year.
The company's cloud services and license support business generated $10.52 billion in revenue, which was a 10% increase from the previous year and higher than the StreetAccount consensus of $10.47 billion.
Oracle's cloud and on-premises license segment generated $870 million in revenue, representing a 7% increase and surpassing StreetAccount's $757.6 billion consensus.
In the previous quarter, cloud infrastructure revenue increased by 42%, but in the current quarter, it rose by 45%, indicating a faster growth rate.
In the quarter, Oracle declared the launch of a second cloud region in Saudi Arabia and stated that its database software would be accessible via public cloud.
On Monday, Oracle announced a partnership with cloud infrastructure leader Web Services to offer its database services on dedicated hardware.
While the S&P 500 stock index has gained about 15% this year, Oracle stock has experienced a growth of approximately 34%.
A conference call will be held at 5 p.m. ET, during which executives will provide guidance and discuss the results with analysts.
Gradient's Jeremy Bryan believes that Oracle could be at the forefront of the next advancement in AI technology.
Technology
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