Key Takeaways
- Oracle’s fiscal first-quarter results exceeded analysts’ expectations, sending shares higher in extended trading Monday.
- Revenue from Oracle’s cloud services jumped as the company said demand for training AI large language models in the cloud surged.
- Oracle and Amazon Web Services also announced a multicloud partnership.
Oracle (ORCL) shares jumped in extended trading Monday after the software giant reported fiscal first-quarter results that topped analysts’ expectations and announced a new partnership with Amazon (AMZN).
Oracle reported first-quarter revenue grew 7% year-over-year to $13.3 billion and earnings per share rose to $1.03 from 86 cents a year ago, both of which surpassed analyst estimates compiled by Visible Alpha.
Cloud Services, Oracle’s largest business, delivered revenue growth of 21% to $5.6 billion as the company said demand for training AI large language models in the cloud surged. Oracle CEO Safra Catz also said its “strong contract backlog will increase revenue growth throughout FY25.”
Oracle Announces AWS Partnership
Oracle Cloud Infrastructure (OCI) revenue surged 45% year-over-year to $2.2 billion, and the company launched a new multicloud partnership with Amazon Web Services (AWS) that it expects to drive additional growth.
The partnership is designed to allow customers to access Oracle database technology using AWS cloud data centers. The companies said they would provide more details about the agreement at the Oracle CloudWorld conference on Tuesday.
Shares of Oracle were up over 9% at $152.90 in extended trading Monday following the release.