Oracle Reports Strong Cloud Sales Growth Driven by Rising AI Demand
Oracle Corp reported a significant increase in cloud infrastructure sales, surpassing analyst expectations due to growing demand for artificial intelligence services. The company's cloud business saw revenue jump 121% year-over-year to $7.4 billion compared to the expected $7.19 billion. Oracle has been investing heavily in data center capacity and recently added 850 megawatts of new computing power, supporting its AI-focused transformation. The company also announced it completed a previously disclosed plan to sell up to $20 billion in equity at market value. Despite recent challenges including rising costs and construction delays for data centers, Oracle's shares rose nearly 4% after hours following the earnings report. The stock had declined significantly since June due to concerns over financing needs. Oracle’s first-quarter fiscal sales increased by 30% year-over-year to $19.3 billion with adjusted profit of $1.92 per share, exceeding estimates of $1.75.
Tickers: $ORCL
Topics: AI demand cloud computing earnings report