Oracle beats quarterly results estimates on cloud services demand, shares rise
The company's growth is largely nurtured by its Oracle Cloud Infrastructure (OCI) solution and support for AI workloads. Analysts see the company becoming more of a cloud service provider that relies less on software growth.
"We expect our total cloud growth rate — applications plus infrastructure — will increase from 24 per cent in fiscal year 2025 to over 40 per cent in fiscal year 2026," said CEO Safra Catz.
Revenue for the quarter ended May 31 stood at $15.90 billion, compared with the analysts' average estimate of $15.59 billion, according to data compiled by LSEG.
Quarterly revenue at Oracle's largest unit, cloud services and license support, grew 14 per cent to $11.70 billion from last year.
Oracle has also been introducing AI assistants, advisers and agents. Its AI Agent Studio, announced in March, is designed to help customers and partners build their own customized AI agents.
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