Oracle’s stock saw a significant rise in extended trading, climbing nearly 9% following the company’s release of fiscal first-quarter results, which exceeded Wall Street expectations.
On Monday, the database software giant reported earnings per share of $1.39, surpassing analysts’ consensus of $1.32, and generated revenue of $13.31 billion, slightly ahead of the expected $13.23 billion.
Year-over-year, Oracle’s revenue increased by 8%, up from $12.45 billion. Net income also grew to $2.93 billion, or $1.03 per share, compared to $2.42 billion, or 86 cents per share, in the same period last year. The stock price, at about $153 in after-hours trading, is on track to set a new record, surpassing the previous high of $145.03.
The company’s strong performance can be attributed to its growing cloud services and license support business, which generated $10.52 billion in revenue, marking a 10% increase year-over-year. Additionally, Oracle’s cloud infrastructure business saw a 45% rise in revenue, a notable acceleration from the previous quarter’s 42% growth.
Looking ahead, Oracle anticipates revenue growth of 8% to 10% for the current quarter and expects adjusted earnings per share between $1.45 and $1.49, in line with analyst estimates.
Key drivers behind the stock’s surge include new partnerships with tech giants such as Amazon Web Services and Google.
With input frfom Yahoo Finance, CNBC, and Market Watch.
