Oracle shares jump as Q1 profit, revenue beat forecasts

(Sharecast News) - Oracle shares jumped in pre-market trading on Friday after the software giant reported sharply higher first-quarter profit and revenue, with growth driven by surging demand for its cloud infrastructure business. The stock jumped in after-hours trading on Thursday and was up around 6% ahead of the opening bell, after Oracle reported a 60% year-on-year surge in net profits to $4.76bn in the three months to 31 August, with adjusted earnings of $1.92 a share comfortably ahead of the $1.74 consensus forecast.

Revenue rose 30% year-on-year to a record $19.3bn, also beating expectations of $19.14bn.

The strong performance was underpinned by Oracle Cloud Infrastructure, where revenue surged 121% to $7.4bn. Total cloud revenue climbed 62% to $11.6bn, while cloud applications revenue increased 10% to $4.2bn.

Remaining performance obligations rose by $209bn year-on-year to $664bn, after Oracle signed more than $30bn of additional AI cloud contracts during the quarter.

Chief executive Safra Catz said: "Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply."

Oracle also raised its full-year outlook, saying it now expects fiscal 2027 adjusted earnings per share of $8.10, up 5 cents from the previous forecast and marginally above the $8.05 consensus forecast. Revenue guidance of at least $90bn was maintained.

For the second quarter, revenue is forecast to grow between 30% and 34%, with cloud revenue expected to rise between 65% and 71% in dollar terms.