Oracle Corporation (NYSE: ORCL) reported its fiscal 2024 Q4 and full-year financial results, highlighting robust growth in its cloud business and significant AI-related contracts. Despite missing some analyst expectations, Oracle’s stock surged in after-hours trading due to key partnerships with Google and OpenAI.
Earnings Overview
For Q4, Oracle reported a GAAP EPS of $1.11 and a non-GAAP EPS of $1.63. Total revenue reached $14.3 billion, marking a 3% increase in USD and 4% in constant currency. Cloud revenue grew 20% to $5.3 billion, with IaaS revenue up 42% to $2.0 billion and SaaS revenue up 10% to $3.3 billion. For the full fiscal year, total revenue increased 6% to $53.0 billion.
However, the results fell short of Wall Street expectations, with analysts predicting an adjusted EPS of $1.65 and revenue of $14.55 billion. Cloud services and license support revenue of $10.23 billion missed the StreetAccount consensus of $10.29 billion, and cloud and on-premises licenses revenue of $1.84 billion fell below the expected $2.09 billion.
AI Highlights and Partnerships
Oracle signed over 30 AI sales contracts in Q4, totalling more than $12.5 billion. The company anticipates continued strong AI demand to boost sales and remaining performance obligations (RPO) in fiscal year 2025. Significant partnerships were announced with Microsoft and OpenAI, including delivering supplemental computing capacity to OpenAI using Oracle’s cloud infrastructure.
Oracle also revealed upcoming generative AI features for its Fusion cloud applications, targeting supply chain management and human resources.
Following the earnings release and partnership announcements, Oracle’s stock price jumped as much as 11% in after-hours trading. The company’s shares closed at $123.88 on Monday and were trading at $134.62 in pre-market trading, up 8.67%. Oracle’s 52-week range is $86.87 – $146.14, with an intraday market capitalization of $340.485 billion.
