Oracle misses on earnings but touts data center growth from AI

Oracle misses on earnings but touts data center growth from AI


Larry Ellison, chairman and co-founder of Oracle Corp., speaks during the Oracle OpenWorld 2017 conference in San Francisco on Oct. 1, 2017.

David Paul Morris | Bloomberg | Getty Images

Oracle issued quarterly results on Monday that trailed analysts’ estimates, but the company offered bullish comments on its cloud infrastructure segment.

Here is how Oracle did compared to LSEG consensus:

  • Earnings per share: $1.47 adjusted vs. $1.49 expected
  • Revenue: $14.13 billion vs. $14.39 billion expected

Revenue increased 6% from $13.3 billion in the same period last year. Net income rose 22% to $2.94 billion, or $1.02 a share, from $2.4 billion, or 85 cents a share, a year earlier. Revenue in Oracle’s cloud services business jumped 10% from a year earlier to $11.01 billion, accounting for 78% of total sales.

The company’s cloud infrastructure segment, which helps businesses move workloads out of their own data centers, has been booming due to demand for computing power that can support artificial intelligence projects. Oracle said revenue in its cloud infrastructure unit increased 49% from a year earlier to $2.7 billion.

“We are on schedule to double our data center capacity this calendar year,” Oracle Chair Larry Ellison said in a release. “Customer demand is at record levels.”

In January, President Donald Trump announced plans to invest billions of dollars in AI infrastructure in the U.S. in collaboration with Oracle, OpenAI and SoftBank. The first initiative of the joint venture, called Stargate, will be to construct data centers in Texas, an effort that is already underway, Ellison said during the announcement at the White House.

Oracle’s cloud and on-premises licenses business contributed $1.1 billion in revenue during the quarter, down 10% year over year.

Oracle also said it is increasing its quarterly dividend to 50 cents a share from 40 cents.

As of Monday’s close, the stock is down almost 11% year to date.

Oracle will hold its quarterly call with investors and share its outlook at 5 p.m. ET.

Don’t miss these insights from CNBC PRO

Oracle misses on quarterly results, raises dividend by 25%



Source

Google agrees to pay .4 billion data privacy settlement to Texas
Technology

Google agrees to pay $1.4 billion data privacy settlement to Texas

A Google corporate logo hangs above the entrance to the company’s office at St. John’s Terminal in New York City on March 11, 2025. Gary Hershorn | Corbis News | Getty Images Google agreed to pay nearly $1.4 billion to the state of Texas to settle allegations of violating data privacy rights of the state’s […]

Read More
Affirm shares drop 13% on weak forecast, concerns over CEO’s bet on 0% loans
Technology

Affirm shares drop 13% on weak forecast, concerns over CEO’s bet on 0% loans

Max Levchin, co-founder of PayPal and chief executive officer of financial technology company Affirm, arrives at the Sun Valley Resort for the annual Allen & Company Sun Valley Conference, in Sun Valley, Idaho. Drew Angerer | Getty Images Affirm shares plunged on Friday after the fintech company issued a weak forecast, and investors questioned CEO […]

Read More
Google would need to shift up to 2,000 employees for antitrust remedies, search head says
Technology

Google would need to shift up to 2,000 employees for antitrust remedies, search head says

Liz Reid, vice president, search, Google speaks during an event in New Delhi on December 19, 2022. Sajjad Hussain | AFP | Getty Images Testimony in Google‘s antitrust search remedies trial that wrapped hearings Friday shows how the company is calculating possible changes proposed by the Department of Justice. Google head of search Liz Reid […]

Read More