Key Takeaways

  • Oracle reported fourth-quarter earnings and revenue missing analysts’ expectations, but announced large cloud infrastructure deals with Microsoft, OpenAI, and Alphabet’s Google.
  • The company’s revenue grew from the year-ago period, but fell short of analysts’ expectations, while earnings declined from the same period the previous year and missed estimates.
  • Oracle announced a partnership with Microsoft and OpenAI extending Microsoft’s cloud platform Azure Al to Oracle Cloud Infrastructure (OCI), as well as an agreement with Google Cloud.

Oracle (ORCL) reported fourth-quarter revenue and earnings that missed analysts’ estimates, but announced large cloud infrastructure deals with Microsoft (MSFT), OpenAI, and Alphabet’s (GOOGL) Google Cloud for artificial intelligence (AI) data centers, sending Oracle shares up over 9% in extended trading Tuesday.

Oracle reported revenue of $14.29 billion for the fiscal fourth quarter of 2024, up 3% from the year-ago period but below analysts’ expectations, according to estimates compiled by Visible Alpha.

Net income came in at $3.14 billion or $1.11 per share, down from $3.32 billion or $1.19 per share in the same period a year prior, and also short of analysts’ projections.

Q4 FY24 Analyst Estimates for Q4 FY24 Q4 FY23
Revenue $14.29 billion $14.57 billion $13.84 billion
Diluted Earnings Per Share $1.11 $1.17 $1.19
Net Income $3.14 billion $3.31 billion $3.32 billion

Oracle announced a partnership with Microsoft and ChatGPT maker OpenAI to extend Microsoft’s cloud platform, Azure Al, to Oracle Cloud Infrastructure (OCI) to provide additional capacity for OpenAI.

“We are delighted to be working with Microsoft and Oracle. OCI will extend Azure’s platform and enable OpenAI to continue to scale,” OpenAI CEO Sam Altman said.

“In Q3 and Q4, Oracle signed the largest sales contracts in our history—driven by enormous demand for training AI large language models in the Oracle Cloud,” Oracle CEO Safra Catz said, adding that she “expect[s] that each successive quarter should grow faster than the previous quarter—as OCI capacity begins to catch up with demand.”

“In Q4 alone, Oracle signed over 30 AI sales contracts totaling more than $12.5 billion—including one with Open AI to train ChatGPT in the Oracle Cloud,” Catz said.

The company also announced it “recently signed an agreement with Google to interconnect our clouds—and initially build 12 OCI datacenters inside the Google Cloud. We expect the Oracle database to be available within the Google Cloud in September this year.”

Oracle shares jumped over 9% to $135.25 as of 4:50 p.m. ET in extended trading Tuesday following the announcement.

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