Oracle’s shares surged by 9% in after-hours trading following the release of their fiscal first-quarter results, which surpassed Wall Street expectations. The company reported an adjusted earnings per share of $1.39, outperforming the expected $1.32, and recorded revenue of $13.31 billion, exceeding the projected $13.23 billion.
Oracle experienced an 8% increase in revenue from $12.45 billion in the previous year, with net income rising to $2.93 billion, or $1.03 per share. This is a significant improvement from $2.42 billion, or 86 cents per share, recorded in the same quarter last year.
The stock price of Oracle reached about $153 in after-hours trading, positioning the company to achieve a new record on the following day. This surge comes after an already impressive year, with Oracle’s stock having increased by 34% compared to the S&P 500’s 15% gain.
CEO Safra Catz expressed optimism about the company’s performance in the current quarter, expecting revenue growth in constant currency to range between 7% and 9%. Analysts had anticipated growth of 8.8%, with revenue projected to reach $14.1 billion. Oracle also provided guidance for adjusted earnings per share for the fiscal second quarter, forecasting a range of $1.42 to $1.46 in constant currency, slightly lower than analysts’ expectations of $1.47 per share.
Strong Performance in Cloud Services
Oracle’s cloud services and license support business generated $10.52 billion in revenue, marking a 10% increase from the previous year and surpassing StreetAccount’s consensus of $10.47 billion. Additionally, the cloud and on-premises license segment recorded $870 million in revenue, a 7% increase, and exceeded StreetAccount’s consensus. Revenue from cloud infrastructure also saw a significant growth of 45%, reaching $2.2 billion.
Expanding Cloud Infrastructure
Oracle made strategic moves during the quarter to expand its cloud infrastructure offering, including the opening of a second cloud region in Saudi Arabia and making its database software accessible through Google’s public cloud. Furthermore, the company announced a partnership with Amazon Web Services to provide its database services on dedicated hardware, further extending its reach in the cloud market.
Oracle’s strong financial performance, particularly in the cloud services sector, demonstrates the company’s ability to adapt and grow in a rapidly evolving technology landscape. With a positive market reaction and ambitious growth projections for the future, Oracle appears to be on a path of continued success and innovation.
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