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TechOracle cloud infrastructure sales surge 121% to $7.4B, beating estimates on AI demand
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Oracle reported cloud computing growth that exceeded analyst expectations, driven by surging demand for AI workloads. The company's cloud infrastructure business saw sales surge 121% to $7.4 billion, beating the average analyst estimate of $7.19 billion. Oracle has transformed from a database software firm into a compute provider for AI, building massive data centers for customers like OpenAI. The company added 850 megawatts of data center capacity in the quarter and completed its previously announced $20 billion equity sale at market prices. First-quarter revenue grew 30% to $19.3 billion, with profit excluding certain items at $1.92 per share, above the $1.75 estimate. Following the earnings report, Oracle shares rose about 4% in after-hours trading, recovering from a 38% decline since June due to concerns over financing needs and construction challenges.
Source report
Bloomberg — Oracle reported cloud computing growth that exceeded analyst expectations, indicating that its large-scale AI data center projects are helping boost financial performance.
The closely watched cloud infrastructure business saw sales surge 121% to $7.4 billion, compared with an average analyst estimate of $7.19 billion.
The company also stated that it had completed its previously announced plan to sell $20 billion in equity at market prices. Several analysts had questioned the timing of this equity sale ahead of Thursday's earnings release.
Business Transformation and AI Focus
Long known for its database software, Oracle has transformed into a compute provider for AI workloads and is building data centers on a massive scale for customers such as OpenAI. Wall Street is closely monitoring the spending levels and completion speed of these ambitious projects. The company said it added 850 megawatts of data center capacity this quarter.
Market Reaction
Following the earnings report, Oracle shares rose about 4% in after-hours trading, having closed at $152.94 in New York earlier in the day.
TD Cowen analyst Derek Wood noted before the earnings release that the stock had fallen 38% since hitting its year-to-date high on June 1, citing reports of financing needs, rising component costs, and challenges in data center construction.
Key Financial Results
- First-quarter revenue grew 30% to $19.3 billion.
- Profit excluding certain items was $1.92 per share, compared with an average analyst estimate of $1.75 per share.
Source: Bloomberg
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Part of this Story
Oracle Q1 revenue beats estimates as AI-driven cloud sales surge 121%