Oracle beats quarterly results estimates on cloud services demand, shares rise
FILE PHOTO: A logo of cloud service provider Oracle is seen at the company's offices at Eastpoint Business Park, Dublin, Ireland October 18, 2021. REUTERS/Tom Bergin/File Photo
(Reuters) -Oracle beat Wall Street estimates for fourth-quarter results on Wednesday, boosted by growing demand for its cloud offerings from companies deploying artificial intelligence, sending its shares up 7% after the bell.
The company's growth is largely nurtured by its Oracle Cloud Infrastructure (OCI) solution and support for AI workloads. Analysts see the company becoming more of a cloud service provider that relies less on software growth.
"We expect our total cloud growth rate — applications plus infrastructure — will increase from 24% in fiscal year 2025 to over 40% in fiscal year 2026," said CEO Safra Catz.
Revenue for the quarter ended May 31 stood at $15.90 billion, compared with the analysts' average estimate of $15.59 billion, according to data compiled by LSEG.
Quarterly revenue at Oracle's largest unit, cloud services and license support, grew 14% to $11.70 billion from last year.
Oracle has also been introducing AI assistants, advisers and agents. Its AI Agent Studio, announced in March, is designed to help customers and partners build their own customized AI agents.
Excluding items, the company earned $1.70 per share in the fourth quarter, compared with estimates of $1.64 apiece.
(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
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