Oracle’s recent announcement of cloud deals with Google and OpenAI caused their shares to soar by 9% in extended trading. Despite falling short of Wall Street expectations for the fourth quarter, the company reported an increase in revenue of 3% year over year, reaching $14.29 billion. While earnings per share were adjusted to $1.63, slightly below the expected $1.65, Oracle’s net income declined to $3.14 billion from $3.32 billion in the year-ago quarter. The cloud services and license support segment saw a 9% increase in revenue, generating $10.23 billion, although it was slightly below the StreetAccount consensus.
Oracle’s cloud and on-premises licenses business contributed $1.84 billion in revenue, a 15% decrease from the previous year and lower than the expected $2.09 billion. Cloud infrastructure revenue grew by 42%, amounting to $2.0 billion, a slight deceleration from the prior quarter’s 49% growth rate. Despite being smaller in comparison to competitors like Amazon Web Services and Microsoft Azure, Oracle’s cloud business is expanding rapidly. By partnering with Google and OpenAI, Oracle aims to strengthen its position in the cloud market. Bringing its database to Google’s cloud and collaborating with OpenAI for additional computing capacity demonstrates Oracle’s commitment to innovation and growth.
Oracle announced that its database software would be available in five more Azure data center regions, bringing the total to 15. Additionally, generative artificial intelligence features will be integrated into Oracle’s Fusion cloud applications for supply chain and human resources. These strategic initiatives signify Oracle’s efforts to enhance its cloud offerings and remain competitive in the ever-evolving technology landscape. Despite the positive after-hours market reaction, Oracle’s stock has already surged by 18% this year, outperforming the S&P 500 index.
Oracle’s recent performance highlights its resilience and adaptability in a highly competitive industry. The company’s focus on cloud services, strategic partnerships, and technological advancements bode well for its future growth prospects. By leveraging partnerships with industry leaders like Google and OpenAI, Oracle aims to drive innovation and expand its market presence. As executives share insights and guidance during the upcoming conference call, investors and analysts are eager to learn more about Oracle’s strategic direction and growth trajectory. Keep an eye out for further updates on Oracle’s journey towards cloud excellence.