Oracle Corporation (ORCL) kicked off its fiscal year with a bang, reporting first-quarter results that surpassed Wall Street expectations. Revenue climbed 8% year-over-year to $13.31 billion, exceeding analysts’ estimates of $13.23 billion. This impressive performance was fueled by strong growth in Oracle’s cloud services, which saw a 21% year-over-year increase, reaching $5.6 billion.
One of the key drivers of Oracle’s cloud growth is its cloud infrastructure business. This segment, powered by hardware from Nvidia Corporation (NVDA), experienced a 45% surge in revenue to $2.2 billion. While this growth rate is slightly slower than the 49% growth seen in the previous quarter, it still reflects a robust expansion in Oracle’s cloud capabilities.
Adding to the positive news, Oracle announced a groundbreaking partnership with its cloud rival, Amazon.com Inc (AMZN). This collaboration will bring Oracle’s database services to Amazon Web Services (AWS), offering customers more choice and flexibility in their cloud deployments. This strategic move follows similar agreements Oracle has made with Google Cloud and Microsoft, solidifying its position as a leading provider of database solutions across the major cloud platforms.
Oracle’s commitment to artificial intelligence (AI) is also evident in its recent achievements. The company secured 42 new cloud contracts worth $3 billion, with a focus on building data centers equipped with Nvidia GPUs for training large-scale AI models. This investment highlights Oracle’s ambition to become a major player in the rapidly evolving AI landscape.
Looking ahead, Oracle is optimistic about its future prospects. The company projects revenue growth of 8% to 10% for the current quarter, with adjusted earnings per share expected to be between $1.45 and $1.49. For the full fiscal year ending in May 2025, Oracle targets double-digit revenue growth, aiming for $65 billion in revenue for fiscal year 2026.
The combination of strong cloud growth, AI potential, and partnerships with key industry players positions Oracle for continued success in the years to come. Its ability to offer competitive cloud solutions, coupled with its focus on AI, has garnered investor confidence, as evidenced by a surge in Oracle’s share price, up over 32% year-to-date.
