Oracle’s fiscal fourth-quarter earnings and revenue fell short of analysts’ expectations, causing the stock to drop in after-hours trading. While total revenue increased by 3% to $14.29 billion, it missed the projected $14.55 billion. Adjusted earnings per share came in at $1.63, lower than the anticipated $1.65.
The cloud business, a key growth area for Oracle, showed mixed results. Cloud revenue, including infrastructure and applications, grew 20% to $6.8 billion, but analysts had expected more. Specifically, cloud infrastructure revenue grew 49%, while cloud application revenue rose by 10%.
Oracle highlighted its strength in AI infrastructure and its partnerships with companies like Nvidia and Microsoft, emphasizing the significant demand for its Gen2 Cloud Infrastructure to train large language models. They emphasized that current demand for their AI infrastructure exceeds supply.
Looking ahead, Oracle provided a forecast for the first quarter of fiscal year 2025, projecting revenue growth between 8% and 10%.
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