On Monday, Oracle reported lower Q1 financial data as it surpassed estimates on robust demand for its cloud services.
Despite exceeding forecasts, its stock dipped to close the session by -1.35% to $139.89 apiece. However, it recovered by 8.95% to $152.40 per share in after-hours trading.
Meanwhile, Oracle’s earnings per share plummeted to $1.39, better than analysts’ $1.33 outlook but lower than last quarter’s $1.63 data.
Furthermore, its revenue plunged by $13.30 billion, exceeding experts’ consensus of $13.23 billion, but it was down compared to last quarter’s $14.30 billion.
CEO Safra Catz noted on the earnings call that the firm anticipates revenue growth of 8.00% to 10.00% for the current quarter. Meanwhile, analysts forecasted a rise of close to 9.00%.
Moreover, Oracle predicts adjusted earnings per share for the next quarter of $1.45 to $1.49, while experts see a $1.49 per share.
According to reports, Oracle topped analysts’ forecasts amid solid cloud computing data and has begun tightening gaps with market leaders Microsoft and Amazon Web Services.
The Texas-based firm’s Cloud Infrastructure remains robust, and sustained demand for computing services is anticipated, especially in artificial intelligence (AI) apps.
Larry Ellison, the company’s co-founder, added that Oracle is designing a data center that uses over a gigawatt of power and relies on three modular nuclear reactors.
Amazon Web Services, Oracle Partnership Pushes Stock to Rise
Oracle stock recovered after hours on Monday following announcing a strategic partnership with Amazon Web Services (AWS).
According to reports, the move will allow users to utilize numerous cloud platforms simultaneously.
Furthermore, Oracle customers will gain access to run database services on AWS infrastructure to simplify data management and integration.
Meanwhile, the company has 162 operating and under maintenance cloud data centers worldwide. Oracle’s CloudWorld annual event will kick off in Las Vegas, Nevada, on Monday.
On the other hand, AWS offers nearly 240 services, including but not limited to computing, storage, and databases, in over 34 regions.
