Oracle, the American commercial software giant, released its financial report for the fourth quarter of the 2023 fiscal year, showcasing robust growth. The company’s stock price soared to a record high at the close of trading and continued to rise by 3.5% in after-hours trading. In the midst of an ongoing tech recession in a lot of parts of the world, this is a major achievement.
Oracle’s Cloud Computing business had the biggest growth numbers
According to the financial report, Oracle’s total revenue for the quarter reached $13.8 billion, marking a 17% year-on-year increase. This surpassed analysts’ average forecast of $13.7 billion, demonstrating Oracle’s ability to surpass expectations. The net income, excluding special income, stood at $1.67 per share, outperforming analysts’ projection of $1.58 per share. Oracle’s cloud computing business specifically experienced impressive growth, with fourth-quarter revenue reaching $4.4 billion, a 54% increase compared to the previous year. The cloud infrastructure segment contributed $1.4 billion in revenue, growing by 17%, while cloud software sales rose by 45% to $3 billion.
Oracle CEO Safra Catz expressed confidence in the company’s future, stating that they anticipate that the company will surpass the current growth rate of the previous fiscal year in the upcoming year. Oracle has strategically expanded its cloud computing infrastructure to compete with industry leaders like Amazon and Microsoft. While the growth rates of these companies have slowed down, Oracle’s cloud computing business has thrived. The increasing demand for generative artificial intelligence in the market has significantly boosted Oracle’s cloud computing business. As evidence, generative AI startup Cohere recently secured $270 million in funding, with Oracle being one of the investors.
Following the release of the financial report, Barclays Bank analyst Raimo Lenschow predicted that Oracle’s stock price would continue to rise. The stock closed at a record high of $116.43 per share, representing a 42% increase since the beginning of the year.
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(Via)
