Oracle reports better than expected Q4 earnings

Boosted by growing demand for its cloud services, the company’s revenue for the quarter jumped about 17% to $13.84 billion. According to Bloomberg, analysts  estimated $13.7 billion.

Its shares were up nearly 3% in extended trade.

During the market hours, Oracle shares jumped as much as 7% to an all-time high after J.P. Morgan hiked its price target ahead of its fourth-quarter results.

“Revenue growth was led by our cloud applications and infrastructure businesses,” Oracle chief executive officer Safra Catz said in a statement.

“Companies doing LLM (large language model) development such as Mosaic ML, Adept AI, Cohere plus 30 other AI development companies have recently signed contracts to purchase more than $2 billion of capacity in Oracle’s Gen2 Cloud,” Oracle chairman and chief technology officer Larry Ellison said in the statement.

“Oracle’s Gen2 Cloud has quickly become the number 1 choice for running Generative AI workloads,”Ellison added.

The Austin, Texas-based software maker reported profit, excluding some items, at $1.67 a share. 

The revenue for Oracle’s cloud services and license support unit rose to $9.37 billion in the quarter from $7.61 billion a year earlier.

Its cloud infrastructure revenue increased 76% to $1.4 billion in the period ended May 31. Cloud application sales jumped 45% to $3 billion.

The company has partnered with Nvidia to make the chip maker’s AI software 

and chips available to Oracle customers via its cloud services. 

Oracle shares have rallied 42% this year, compared with the 32% rise in the iShares expanded software ETF.

Updated: 13 Jun 2023, 03:00 AM IST