Stock market data from financial news websites

Oracle Shares Surge 10% on Google and OpenAI Deals Despite Q4 Earnings Miss

Jun 11, 2024, 09:31 PM

Oracle Corporation reported its fiscal fourth-quarter earnings, revealing a slight miss on both revenue and earnings per share (EPS). The company posted adjusted revenue of $14.29 billion, falling short of the estimated $14.57 billion, and an adjusted EPS of $1.63, below the expected $1.65. Despite these misses, Oracle's stock surged approximately 10% in after-hours trading, driven by strong performance in its cloud infrastructure and new strategic partnerships. Cloud revenue increased by 20%, with cloud infrastructure revenue up 42% year-over-year. Notably, Oracle signed significant deals with Google Cloud and OpenAI, which are expected to bolster its AI capabilities. The company also reported a 44% increase in Total Remaining Performance Obligations (RPO) to $98 billion, attributed to AI-related contracts. Oracle's CEO, Safra Catz, highlighted the largest sales contracts in the company's history, driven by the demand for AI training in the Oracle Cloud. Additionally, Oracle's net income was $3.14 billion. Looking ahead, Oracle provided an optimistic outlook for fiscal 2025, expecting double-digit revenue growth fueled by ongoing AI demand.