Oracle, a leading database software vendor, recently announced its fiscal first-quarter results, exceeding Wall Street expectations. The company reported adjusted earnings per share of $1.39, surpassing the $1.32 consensus, and revenue of $13.31 billion, beating the expected $13.23 billion.
Oracle’s revenue grew by 8% from the previous year, reaching $13.31 billion. Net income also saw an increase to $2.93 billion, or $1.03 per share, compared to $2.42 billion, or 86 cents per share, in the same quarter last year. This strong performance propelled Oracle’s shares to rise by 9% in after-hours trading.
With shares trading at around $153, Oracle is on track to achieve a new record high on Tuesday, surpassing its previous highest close of $145.03 in July. The stock had already gained about 34% year-to-date, outperforming the S&P 500’s 15% increase.
Looking ahead, Oracle anticipates revenue growth of 7% to 9% in constant currency for the current quarter. CEO Safra Catz expressed confidence in the company’s prospects, despite analysts’ expectations of 8.8% growth to $14.1 billion. The company also provided adjusted earnings per share guidance of $1.42 to $1.46 for the fiscal second quarter.
Oracle’s cloud services and license support business generated $10.52 billion in revenue, marking a 10% increase from the previous year. The company’s cloud and on-premises license segment also saw significant growth, with revenue hitting $870 million, up 7%. Additionally, revenue from cloud infrastructure surged by 45% to $2.2 billion.
Oracle’s recent strategic moves include the opening of a new cloud region in Saudi Arabia and making its database software accessible through Google’s public cloud. The company also announced a partnership with Amazon Web Services to offer its database services on dedicated hardware, demonstrating its commitment to innovation and market leadership.
Analysts were closely monitoring Oracle’s performance and were slightly below expectations on both revenue and earnings. The company’s executives will provide further insights and discuss the results with analysts during a conference call scheduled to start at 5 p.m. ET.
Oracle’s impressive fiscal first-quarter results showcase its strong financial performance and strategic initiatives in the cloud technology space. Despite some analyst skepticism, the company’s growth trajectory and innovative partnerships position it well for continued success in the market.