Oracle Corp. reported fourth-quarter revenue of $13.7 billion, beating expectations, as cloud revenue surged 23% year-over-year, driven by strong demand for AI-optimized database and infrastructure services. The results underscore the company’s growing footprint in enterprise AI solutions.
- Oracle reported Q4 revenue of $13.7 billion, a 10% year-over-year increase
- Cloud revenue grew 23% YoY, marking the 12th consecutive quarter of >20% growth
- Non-GAAP EPS reached $1.21, surpassing the $1.17 consensus forecast
- Operating margin expanded to 38.2% due to cloud service mix and cost discipline
- OCI AI service usage increased 50% quarter-over-quarter
- Stock rose 5.6% in after-hours trading following results
Oracle Corp. delivered a standout performance in its latest quarter, with revenue reaching $13.7 billion, up 10% from the prior year and surpassing analyst forecasts. The company’s cloud revenue, a key indicator of long-term growth, rose 23% year-over-year, fueled by increased adoption of Oracle Cloud Infrastructure (OCI) and AI-enhanced database platforms. This marks the 12th consecutive quarter of cloud revenue growth exceeding 20%. The company’s operating margin expanded to 38.2%, reflecting disciplined cost management and higher-margin cloud service deliveries. Net income climbed to $4.3 billion, a 13% increase, while non-GAAP earnings per share reached $1.21, exceeding the consensus estimate of $1.17. These figures highlight Oracle’s ability to scale high-margin offerings while maintaining operational efficiency. Investors responded positively, pushing Oracle’s stock up 5.6% in after-hours trading. The results are seen as a validation of the company’s AI strategy, particularly its recent integration of generative AI tools into core database products. Analysts note that Oracle’s AI-powered database solutions are gaining traction with Fortune 500 clients, particularly in financial services and healthcare sectors, where data security and performance are critical. The market is closely watching Oracle’s trajectory as it competes with Amazon Web Services, Microsoft Azure, and Google Cloud in the enterprise AI infrastructure space. With OCI’s AI service usage growing 50% quarter-over-quarter, Oracle appears well-positioned to capture share in the next wave of enterprise AI adoption.