Oracle shares saw a significant rise of 9% in extended trading following the company’s announcement of their fiscal first-quarter results. These results surpassed Wall Street estimates, portraying a strong performance by the database software vendor. The company reported earnings per share of $1.39 adjusted, compared to the expected $1.32, and revenue of $13.31 billion, surpassing the expected $13.23 billion.
Oracle’s revenue witnessed an 8% increase from the previous year, reaching $12.45 billion. The net income also climbed to $2.93 billion, translating to $1.03 per share, up from $2.42 billion and 86 cents per share in the same quarter last year. This robust performance propelled Oracle’s stock price to about $153 in after-hours trading, positioning the company to potentially hit a record high.
Oracle’s strong financial results were further supported by its growth expectations for the current quarter. The company anticipates revenue growth in constant currency ranging from 7% to 9%. CEO Safra Catz highlighted this growth trajectory during the earnings call, with analysts pegging a growth estimate of 8.8% to $14.1 billion. While Oracle projects adjusted earnings per share for the fiscal second quarter between $1.42 and $1.46 in constant currency, it fell slightly short of analysts’ expectations of $1.47 per share.
A detailed breakdown of Oracle’s revenue highlighted the strong performance of its cloud services and license support business, generating $10.52 billion. This marked a 10% increase from the previous year and exceeded StreetAccount consensus estimates. The cloud and on-premises license segment also experienced growth, with $870 million in revenue, surpassing analyst expectations.
Oracle’s strategic initiatives underscore its commitment to innovation and growth. During the quarter, Oracle announced the opening of a second cloud region in Saudi Arabia, expanding its global footprint. Moreover, the company’s collaboration with Google’s public cloud platform to offer database software demonstrates its strategic approach to capturing new market opportunities. Additionally, Oracle’s partnership with Amazon Web Services to provide database services on dedicated hardware reinforces its position in the cloud infrastructure market.
Oracle’s strong performance in the first quarter reflects its agility in responding to market demands and its ability to capitalize on growth opportunities. By focusing on cloud services, strategic partnerships, and innovative solutions, Oracle is well-positioned for continued success in the dynamic technology landscape.