Company news: Oracle (ORCL) quarterly results miss analysts’ estimates

Oracle (ORCL) reported Q4 FY2024 earnings of $1.63 per share (versus $1.67 per share in Q4 FY2023), missing analysts’ consensus estimate of $1.65 per share.

The company’s quarterly revenues amounted to $14.287 bln (+3.3% y/y), missing analysts’ consensus estimate of $14.574 bln.

Oracle unveiled that it recently signed an agreement with Google to interconnect its clouds and initially build 12 Oracle Cloud Infrastructure (OCI) data centres inside the Google Cloud and agreed with Microsoft (MSFT) to extend the Microsoft Azure Al platform to OCI to provide additional capacity for OpenAl.

The company's CEO Safra Catz said that Oracle signed the largest sales contracts in its history in Q3 and Q4, driven by enormous demand for training AI large language models in the Oracle Cloud. She added that she expects continued strong AI demand to push Oracle sales throughout FY2025, resulting in double-digit revenue growth this fiscal year.

Oracle also announced that it expects FY2025 Q1 revenues to grow +6-7% y/y in constant currency (does not compare to analysts' consensus estimate).

In addition, it issued in-line guidance for Q1 FY2025, seeing EPS of $1.31-1.35 versus analysts' consensus estimate of $1.32.

ORCL rose to $134.63 (+8.68%) in pre-market trading.