Oracle's Q4 earnings fell below expectations, but upbeat guidance and cloud partnerships led to share rise

From Nasdaq: 2024-06-12 09:33:00

Oracle reported weaker-than-expected fiscal Q4 earnings, with a non-GAAP EPS of $1.63 and revenues of $14.28 billion, missing estimates. Despite this, shares rose over 9% in after-hours trading following upbeat guidance and cloud partnerships with OpenAI and Google. Cloud revenues saw growth, with total cloud revenues reaching $5.3 billion and infrastructure cloud services revenues up 42%. Operating income increased 8%, reaching $6.66 billion, with an expanded operating margin of 47%. The company’s strong balance sheet shows $10.6 billion in cash & cash equivalents and marketable securities. Remaining performance obligation (RPO) is over $98 billion, up 44% in constant currency, with a 39% expectation to be recognized as revenue within the next 12 months. Guidance for fiscal Q1 2025 includes growth in total revenues of 6%-8% in constant currency and an increase in cloud revenues of 21%-23%. Capital expenditure is expected to double compared to fiscal 2024, with a focus on cloud infrastructure services growth. Oracle currently holds a Zacks Rank #4 (Sell), with better-ranked stocks like NVIDIA and Amtech Systems. Oracle’s focus on cloud services and strong financials position them for future growth and success in the tech sector.



Read more at Nasdaq: Oracle (ORCL) Q4 Earnings Miss Estimates, Revenues Rise Y/Y