Oracle Corp., the internationally-recognized information technology company, delivered strong fiscal first-quarter results and a bullish outlook, driven by accelerating demand for its multi-cloud infrastructure amid a global artificial intelligence (AI) boom.
The IT giant reported that its remaining performance obligations—a key measure of future revenue—soared 359 percent year-on-year to USD455 billion, fueled by four new multi-billion-dollar cloud contracts with three hyperscaler clients.
Quarterly revenue rose 12 percent to USD14.9 billion, as cloud revenue surged 28 percent to USD7.2 billion. Software revenue dipped 1 percent to USD5.7 billion. Non-GAAP operating income reached USD6.2 billion, while non-GAAP net income rose 8 percent to USD4.3 billion. On a GAAP basis, operating income was USD4.3 billion, and net income totaled USD2.9 billion.
Oracle shares jumped 36 percent on Wednesday to close at USD328.33, pushing the S&P 500 to a new record. The rally briefly elevated Oracle co-founder and chairman Larry Ellison past Elon Musk as the world’s richest person, according to Bloomberg’s Billionaires Index.
“This was an astonishing quarter,” said CEO Safra Catz. “Over the next few months, we expect to sign additional multi-billion-dollar deals. RPO could exceed half a trillion dollars.”
Catz forecasted that Oracle Cloud Infrastructure revenue will grow 77 percent to USD18 billion this fiscal year, and hit a total USD144 billion within four years, citing massive demand across industries.
Ellison, who is also Oracle’s chief technology officer, noted that multi-cloud database revenue from Amazon, Google, and Microsoft surged 1,529 percent in the first quarter. Oracle delivered 37 new data centers to hyperscaler partners, bringing its total to 71.
“AI changes everything,” Ellison said, adding that Oracle AI Cloud Infrastructure and its MultiCloud AI Database are now central to the company’s long-term growth strategy.
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