Oracle Corporation saw its shares rise by 9% in extended trading on Monday, following the release of its fiscal first-quarter results, which exceeded Wall Street expectations. The company reported earnings per share (EPS) of $1.39, adjusted, surpassing the anticipated $1.32, and revenue of $13.31 billion, ahead of the forecasted $13.23 billion, according to consensus estimates from LSEG.
Revenue for the quarter increased by 8% compared to the $12.45 billion recorded a year earlier. Net income also saw a substantial rise, reaching $2.93 billion, or $1.03 per share, up from $2.42 billion, or 86 cents per share, in the same period last year. At its after-hours trading price of approximately $153, Oracle is set to reach a record high on Tuesday, surpassing its previous peak close of $145.03 in July. Year-to-date, Oracle’s stock has climbed about 34%, significantly outperforming the S&P 500’s 15% gain.
Looking ahead, Oracle projects revenue growth of 8 to 10% for the current quarter. This forecast is slightly below analysts’ expectations of close to 9% growth. The company also anticipates adjusted EPS for the fiscal second quarter to be between $1.45 and $1.49, compared to the consensus estimate of $1.47 per share.
The company’s cloud services and license support division generated $10.52 billion in revenue, a 10% increase from the previous year and surpassing the StreetAccount consensus of $10.47 billion. Revenue from the cloud and on-premises license segment reached $870 million, reflecting a 7% increase and exceeding StreetAccount’s expectation of $757.6 million. Cloud infrastructure revenue soared by 45% to $2.2 billion, marking an acceleration from the 42% growth reported in the previous quarter.
Oracle’s CEO Safra Catz noted robust demand that continues to exceed supply. Oracle is also progressing on a new data center project that will use over a gigawatt of power, relying on modular nuclear reactors, as announced by co-founder and CTO Larry Ellison. The company is considering expanding its data center footprint to 2,000 locations from the current 162, though not all will require significant power consumption.
During the quarter, Oracle announced the opening of a second cloud region in Saudi Arabia and integration of its database software with Google’s public cloud. Additionally, Oracle revealed a new partnership with Amazon Web Services to offer its database services on dedicated hardware.
