Oracle Corporation Delivers Cloud Earnings Surprise on AI Data Center Boost

[Financial News]  Global IT company Oracle Corporation reported cloud-computing results that exceeded market expectations, driven by large-scale artificial intelligence (AI) data center projects.
Oracle said on the 10th, local time, that revenue from its cloud infrastructure (OCI), one of the market's most closely watched businesses, surged 121% year over year to $7.4 billion (approximately 10 trillion won). The figure significantly exceeded the average analyst estimate of $7.19 billion.
Oracle also announced that it had completed its previously disclosed $20 billion at-the-market (ATM) equity offering. Before the earnings release, some on Wall Street had questioned the timing of the offering.
Oracle's first-quarter revenue for its fiscal year rose 30% to $19.3 billion (approximately 26 trillion won), while adjusted net income excluding certain items came to $1.92 per share. That exceeded the market forecast of $1.75 per share.
Once known as a database software powerhouse, Oracle has successfully transformed itself into an infrastructure company that provides AI computing capacity to customers including OpenAI. Wall Street is closely watching the scale and pace of Oracle's aggressive data center investments. Oracle said it added 850 megawatts (MW) of data center capacity in the quarter alone.
After closing the regular New York session at $152.94, Oracle's stock rose about 4% in after-hours trading following the earnings release.
Derrick Wood, an analyst at TD Cowen, said, "Oracle's stock had fallen about 38% from its year-to-date high on June 1, amid concerns about financing, rising component costs, and reports of delays in data center construction." The earnings release was seen as helping ease some of those market concerns.


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