Oracle's revenue exceeds expectations due to cloud service demand

According to reports, Oracle’s step into cloud computing is reaping the company's benefits; quarterly revenue is estimated to have increased due to cloud service demands.

Due to the rising demand for its cloud offerings from businesses using AI, Oracle on Monday beat fourth-quarter revenue forecasts and estimated an optimistic first quarter, sending its shares up nearly 4%.

Oracle's foray into the cloud computing sector has begun to pay off thanks to its purchase of Cerner, a provider of electronic medical records, last year, which has given it an advantage over industry heavyweights Microsoft and Amazon.

The cloud and software provider has expanded its AI services, and through a partnership with Nvidia, Oracle customers now have access to the chipmaker's AI software and chips through the cloud services provider.

According to reports, Oracle's fourth-quarter revenue, increased by almost 17% to a total of $13.84 billion, exceeding analysts' projections of $13.74 billion.

According to analysts, Oracle Cloud Infrastructure (OCI) is quite well-positioned to develop into a significant AI/ML development platform given the firm's partnership with Nvidia, which might represent a further average of 8% growth as predicted by analysts.

During a conference call with analysts, Oracle's Chief Executive Safra Catz said that the company expects cloud revenue to grow, with the exception of Cerner, at least at similar prices in fiscal 2024 as in fiscal 2023.

The stock of the company, which closed Monday at a record high of $116.43, increased to $120.53 in extended trading.