Oracle, the renowned database software vendor, experienced a significant surge in its shares by 9% during extended trading on Monday. The company’s fiscal first-quarter results exceeded Wall Street expectations, showcasing strong financial performance in key metrics. The earnings per share stood at $1.39 adjusted, surpassing the $1.32 expected, while revenue reached $13.31 billion, outperforming the projected $13.23 billion.
Oracle’s revenue witnessed an 8% increase from $12.45 billion compared to the previous year. Furthermore, net income surged to $2.93 billion, translating to $1.03 per share, marking substantial growth from the $2.42 billion, or 86 cents per share, recorded in the same quarter of the previous year. With the after-hours price hovering around $153, Oracle is poised to achieve a new record on the upcoming Tuesday, surpassing its previous highest close of $145.03 in July.
Looking ahead, Oracle anticipates a revenue growth range of 7% to 9% in constant currency for the current quarter, as communicated by CEO Safra Catz during the earnings call. Although analysts had forecasted growth of 8.8% to $14.1 billion, Oracle remains optimistic about its performance. Additionally, the company has projected adjusted earnings per share for the fiscal second quarter to be in the range of $1.42 to $1.46 in constant currency. Despite analysts’ expectations of $1.47 per share, Oracle is confident in its outlook.
Oracle’s cloud services and license support segment saw revenues of $10.52 billion, showcasing a remarkable 10% increase from the prior year and surpassing StreetAccount’s consensus of $10.47 billion. The cloud and on-premises license segment generated $870 million in revenue, reflecting a 7% growth, which exceeded StreetAccount’s consensus of $757.6 billion. Additionally, revenue from cloud infrastructure surged to $2.2 billion, marking a noteworthy 45% increase from the previous year.
Amid its impressive financial results, Oracle also made strategic moves to enhance its market presence. The company announced the opening of a second cloud region in Saudi Arabia and revealed plans to make its database software accessible through Google’s public cloud. Furthermore, Oracle disclosed a partnership with cloud infrastructure market leader Amazon Web Services to facilitate its database services on dedicated hardware, showcasing its commitment to innovation and expanding its offerings.
Oracle’s strong Q1 earnings report, impressive revenue growth, and strategic collaborations position the company for continued success in the highly competitive technology landscape. With a robust financial performance and a clear strategic vision, Oracle remains a key player in the industry, poised for further growth and innovation in the coming quarters.