Oracle forecasts double-digit revenue growth
Oracle forecasted double-digit revenue growth in fiscal 2025, exceeding analysts’ expectations, showing strong demand for its AI-powered cloud services, driving the company’s shares up 9% after the bell.
Oracle forecasts double-digit revenue growth
The company also announced a collaboration with ChatGPT creator OpenAI and Google Cloud to provide its own cloud infrastructure to customers.
“I expect that each successive quarter should grow faster than the previous quarter as OCI (Oracle Cloud Infrastructure) capacity begins to catch up with demand,” Safra Catz, Oracle’s CEO, stated.
Oracle forecasts double-digit revenue growth
“In Q4 alone, Oracle signed over 30 AI sales contracts totaling more than $12.5 billion, including one with OpenAI to train ChatGPT in Oracle Cloud.”
AI investments are critical in Oracle’s efforts to catch up with cloud heavyweights like Microsoft, which is experiencing tremendous growth in its own Azure cloud as a result of its partnership with OpenAI.
Oracle forecasts double-digit revenue growth
Oracle has also spent billions of dollars on hardware from chipmaker Nvidia.
The company’s total sales increased 3% to $14.29 billion in the fourth quarter, falling short of LSEG expectations of $14.55 billion.
Oracle forecasts double-digit revenue growth
“Oracle is doing well in the cloud market as the fourth-largest provider, but that business needs to grow significantly to help overall growth reach double digits,” said Gil Luria, a research analyst at D.A. Davidson.
Oracle reported 6% total sales growth in fiscal 2024. Analysts estimate 9% increase in FY25.
Oracle forecasts double-digit revenue growth
The company expects first-quarter revenue to expand by 5% to 7%, while analysts predict a 7.6% increase.
“In Q3 and Q4, Oracle signed the largest sales contracts in our history, driven by enormous demand for training AI large language models in Oracle Cloud,” Catz stated.
Oracle forecasts double-digit revenue growth
Remaining performance commitments, the most popular metric of booked revenue, totaled $98 billion in the fourth quarter, up 44% over the previous year.
It reported adjusted earnings per share of $1.63, below projections of $1.65.
