Oracle, the renowned database software vendor, exceeded Wall Street expectations in its fiscal first-quarter report. The company’s shares surged by 9% in after-hours trading following the release of the results. With an adjusted earnings per share of $1.39 compared to the expected $1.32, and revenue of $13.31 billion exceeding the projected $13.23 billion, Oracle’s performance has impressed investors and analysts alike.
Oracle’s revenue exhibited an 8% increase from the previous year, reaching $12.45 billion. The net income also saw a substantial rise, climbing to $2.93 billion, translating to $1.03 per share, compared to $2.42 billion and 86 cents per share in the same quarter of the previous year. The company’s stock price has surged to approximately $153, hinting at the possibility of achieving a new record high.
Looking ahead, Oracle anticipates a revenue growth of 7% to 9% in constant currency for the current quarter. CEO Safra Catz expressed confidence in the company’s performance, highlighting an expected adjusted earnings per share for the fiscal second quarter ranging from $1.42 to $1.46. However, analysts had predicted higher earnings per share at $1.47.
Oracle’s cloud services and license support business performed exceptionally well, generating revenue of $10.52 billion, a 10% increase from the previous year. The cloud and on-premises license segment garnered $870 million in revenue, surging by 7%, surpassing expectations. Revenue from cloud infrastructure witnessed a significant spike, reaching $2.2 billion, marking a 45% increase compared to the previous year.
During the quarter, Oracle unveiled its second cloud region in Saudi Arabia and announced the availability of its database software on Google’s public cloud. The company also entered into a strategic partnership with Amazon Web Services to deliver its database services on dedicated hardware. These collaborations are aimed at expanding Oracle’s market reach and enhancing its service offerings.
Overall, Oracle’s strong financial performance, coupled with strategic initiatives and partnerships, position the company for continued growth and success in the competitive landscape of database software and cloud services. With a track record of innovation and adaptability, Oracle remains a formidable player in the technology industry.