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Oracle Shares Surge on Strong AI-Driven Cloud Growth and Record Backlog
Oracle Corp. (NYSE:ORCL) shares surged over 7% in pre-market trading after the company reported fiscal first-quarter results that surpassed Wall Street expectations, fueled by accelerating demand for its artificial intelligence-focused cloud infrastructure services.
Earnings Exceed Expectations
The enterprise technology firm announced strong performance across its key metrics, indicating robust growth in its cloud segment. According to the earnings release, the results highlight a significant year-over-year expansion.
Key figures from Oracle's first-quarter report include:
- Total Revenue: $19.35 billion, compared to analyst expectations of $19.14 billion.
- Adjusted EPS: $1.92, beating the consensus estimate of $1.74.
- Cloud Infrastructure (IaaS) Revenue: $7.40 billion, marking a 121% increase year-over-year.
- Total Cloud Revenue: $11.61 billion, up 62% from the prior year.
- Net Profit: $4.76 billion, a 60% increase year-over-year.
AdAI Demand Boosts Future Revenue
Oracle's performance underscores a broader market trend where corporations are shifting from AI experimentation to full-scale infrastructure deployment. The company's results suggest it is successfully capturing a significant portion of this enterprise spending.
During the quarter, Oracle booked over $30 billion in new AI cloud contracts. This influx pushed the company's total Remaining Performance Obligations (RPO), a key indicator of future contracted revenue, to a record $664 billion. This massive backlog provides investors with increased visibility into the company's long-term growth trajectory and sustained demand for its AI and cloud offerings.
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