Oracle Corp. delivered earnings that surpassed analyst estimates on Thursday, attributing the strong performance to surging demand for its artificial intelligence cloud infrastructure. The technology giant subsequently upgraded its full-year financial guidance, signaling continued momentum in its business operations.
For the fiscal year ending in May 2027, Oracle revised its revenue projection upward to at least $90 billion, an increase from its previous target of exactly $90 billion. Adjusted earnings per share (EPS) forecasts were also raised to $8.10 from an earlier estimate of $8.05.
The company reported August quarter revenue of $19.3 billion, representing a 30% increase from the prior year. This figure exceeded the $19.14 billion anticipated by FactSet analysts. Oracle credited the growth to expanded data-center capacity and its infrastructure segment.
Oracle Cloud Infrastructure (OCI) was a primary driver, posting 62% growth and generating $11.6 billion in revenue for the quarter. This performance slightly outpaced the $11.5 billion consensus estimate, defying some analyst concerns regarding increased pricing competition in the high-demand computing market.
Remaining performance obligations (RPO), which serve as a key indicator of the company’s sales backlog, reached $664 billion. This marked a 4% rise from the previous quarter and significantly exceeded the $618 billion projected by analysts. Oracle stated that customer demand for AI cloud training and inferencing services is growing faster than the company can currently fulfill it.
Adjusted EPS for the August quarter came in at $1.92, up 30% year-over-year and well above the $1.74 expected by researchers. Looking ahead to the November quarter, Oracle expects revenue growth between 30% and 34%, compared to the FactSet average expectation of 31.9%. Adjusted EPS is projected to fall between $1.85 and $1.93, against a consensus of $1.89.
Investors are closely monitoring Oracle’s capital expenditure plans as the company takes on debt to finance its AI expansion. For the August quarter, capital spending totaled $28.5 billion, primarily directed toward data centers and hardware, significantly exceeding the $19.23 billion modeled by analysts.
Following the earnings release and upgraded guidance, Oracle shares rose approximately 7% in after-hours trading.
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