Oracle shares climb 8% as earnings, revenue top estimates

Oracle's shares experienced a notable uptick of approximately 8% in after-hours trading on Wednesday, buoyed by a strong earnings report that surpassed Wall Street expectations and indicated robust cloud growth. For the fiscal fourth quarter ending May 31, the tech giant reported an impressive 11% increase in revenue. The company's net income also saw a significant rise, climbing to $3.43 billion, or $1.19 per share, compared to $3.14 billion, or $1.11 per share, during the same period last year. CEO Safra Catz highlighted the company’s optimistic outlook, forecasting that cloud infrastructure revenue is set to grow by over 70% in the fiscal year 2026, a notable increase from the 52% growth recorded in the recent quarter. The revenue from cloud services and license support reached $11.7 billion, exceeding the analyst consensus of $11.59 billion, while cloud and on-premises license revenue of $2.01 billion also surpassed expectations. In addition to its financial performance, Oracle announced a strategic partnership with Cleveland Clinic and G42, a leading AI holding company in the UAE, focused on developing an AI delivery platform for the healthcare sector. Furthermore, the company revealed cloud and consulting agreements with IBM. In a significant move, SoftBank confirmed its intention to acquire Ampere, an Oracle-backed chip design startup, for $6.5 billion. As of the market's close on Wednesday, Oracle shares have risen 6% this year, outpacing the S&P 500 index, which is up 2%. Executives are set to provide further insights and guidance during a conference call with analysts scheduled for 5 p.m. ET. Stay tuned for more updates on this evolving story.