Oracle Stock Up On Q1 Profit Above Street, Deals With Amazon, Google

(RTTNews) - Shares of Oracle Corp. gained around 9 percent in the after-hours trading on Monday after the tech major reported higher first-quarter earnings above market estimates, and a dividend. The company also announced partnerships with Amazon Web Services, Inc., Google Cloud, and certain other global organizations for Oracle Database.

Oracle and Amazon Web Services or AWS announced the launch of Oracle Database@AWS, a new offering that allows customers to access Oracle Autonomous Database on dedicated infrastructure and Oracle Exadata Database Service within AWS.

AWS customers will get easy and convenient access to the Oracle database when the service goes live in December later this year.

Larry Ellison, Oracle Chairman and CTO, and Matt Garman, AWS CEO, will discuss the partnership on-stage at Oracle CloudWorld on September 10 at 1:00 p.m. Pacific Daylight Time.

Further, Oracle and Google Cloud announced the general availability of Oracle Database@Google Cloud in four Google Cloud regions across the United States and Europe. The company noted that customers will now be able to run Oracle Exadata Database Service, Oracle Autonomous Database, and Oracle Database Zero Data Loss Autonomous Recovery Service on Oracle Cloud Infrastructure or OCI in Google Cloud datacenters across selected regions.

The companies plan to expand the offering to many more regions in the coming months across North America, Europe, the Middle East, Africa, Asia Pacific, and Latin America.

Separately, Oracle announced that global organizations, including MSCI and Fonterra, are adopting Oracle Database@Azure to accelerate their cloud migrations. Oracle and Microsoft continue to make Oracle Database@Azure available in more new regions across the world and add new services to meet rapidly growing global demand.

Oracle Database@Azure is now available in six Microsoft Azure regions, and the service will soon be available in fifteen more regions.

In its earnings statement, Oracle CEO, Safra Catz said, "As Cloud Services became Oracle's largest business, both our operating income and earnings per share growth accelerated. ... Remaining Performance Obligations was up 53 percent from last year to a record $99 billion. That strong contract backlog will increase revenue growth throughout FY25. But the biggest news of all was signing a MultiCloud agreement with AWS—including our latest technology Exadata hardware and Version 23ai of our database software—embedded into AWS cloud datacenters."

Further, the board of directors declared a quarterly cash dividend of $0.40 per share, to be paid to stockholders of record as of the close of business on October 10, with a payment date of October 24.

In its first quarter, Oracle's earnings came in at $2.929 billion or $1.03 per share, higher than $2.420 billion, or $0.86 per share, in last year's first quarter.

Adjusted earnings were $3.964 billion or $1.39 per share for the period. Analysts on average had expected the company to earn $1.32 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter rose 6.9 percent to $13.307 billion from $12.453 billion last year. and up 8 percent in constant currency

Cloud services revenues were up 21 percent year-over-year to $5.6 billion. Cloud license and on-premise license revenues were up 7 percent to $870 million. Cloud Infrastructure revenue climbed 45 percent to $2.2 billion.

Oin the NYSE, Oracle shares closed Monday's regular trading at $139.89, down 1.35 percent. However, after the earnings report, the stock climbed 8.9 percent in the after-hours to trade at $152.30.

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