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Oracle Q4 results top estimates as cloud demand bolsters performance

Published 06/13/2023, 04:38 AM
© Reuters.
ORCL
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Investing.com - Oracle reported on Monday fiscal fourth-quarter results that beat analysts' forecasts, driven by strength in its cloud businesses.

Oracle Corporation (NYSE:ORCL) shares gained 3% in after-hours trade following the report.

Oracle announced adjusted EPS of $1.67 on revenue of $13.84 billion. Analysts polled by Investing.com anticipated EPS of $1.58 on revenue of $13.74B.

The bottom line was boosted by strong revenue growth in its cloud business.

Cloud services and license support revenues were up 23% to $9.37B year-on-year, while cloud license and on-premise license revenues were down 15% to $2.15B.

"Annual revenue growth was led by our cloud applications and infrastructure businesses which grew at a combined rate of 50% in constant currency," the company said.

Operating margin fell to 30% from 38% in the same period last year.

The company also talked up AI-driven demand for its cloud services. 

"[C]utting edge companies doing LLM development such as Mosaic ML, Adept AI, Cohere plus 30 other AI development companies have recently signed contracts to purchase more than $2 billion of capacity in Oracle's Gen2 Cloud," it added.

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