Oracle stock pops 10% on Q3 earnings: ‘demand for our Gen2 AI infrastructure exceeds supply’

March 11, 2024 01:12 PM PDT | By Invezz

Oracle stock pops 10% on Q3 earnings: ‘demand for our Gen2 AI infrastructure exceeds supply’ — Image source: Invezz

Oracle stock up on impressive cloud revenue

The computer technology company continued to see strength in its cloud revenue that printed at $5.1 billion in Q3 – up 25% on a year-over-year basis.

$ORCL also reported a whopping $12.3 billion in free cash flow for the past twelve months. Safra Catz – the chief executive of Oracle Inc said in a press release today:

We expect to continue receiving large contracts reserving cloud infrastructure capacity because the demand for our Gen2 AI infrastructure substantially exceeds supply.

The New York listed firm, however, left its quarterly cash dividend unchanged versus last year at 40 cents per share on Monday. Oracle stock has now gained roughly 50% over the past twelve months. Watch here: https://www.youtube.com/embed/0WRKItGVNFs?feature=oembed

Oracle Q3 earnings snapshot

Earned $2.4 billion versus the year-ago $1.89 billion
Per-share earnings also climbed from 68 to 85 cents
Adjusted EPS printed at $1.41 as per the earnings report
Revenue jumped 7.0% year-over-year to $13.3 billion
Consensus was $1.38 a share on $13.29 billion in revenue

Oracle ended its third quarter with a 29% increase in total remaining performance obligations to $80 billion. CEO Catz also said on Monday:

We expect that our Gen2 Cloud Infrastructure business will remain in a hypergrowth phase—up 53% in Q3—for the foreseeable future.

This is a developing story. Check back in a few minutes for more updates!

.@Oracle was recognized by @Gartner_inc as a Leader in Integration Platform as a Service.
✅Recognized as a Leader for the seventh consecutive time in iPaaS.
✅Placed in the Leaders Quadrant in the 2023 Gartner® Magic Quadrant™ for Data Integration Tools. https://t.co/HgRZRV2jh8 — Juan Fernández (@juanfdezortega) March 5, 2024

The post Oracle stock pops 10% on Q3 earnings: 'demand for our Gen2 AI infrastructure exceeds supply' appeared first on Invezz

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