MW Oracle shares gain as investors focus on cloud deals, overlooking quarterly revenue miss
By Therese Poletti
Oracle misses on overall revenue, with much of that in cloud services
Oracle Corp. shares were up in after-hours trading Monday, as investors appeared to initially overlook the software giant's disappointing quarterly revenue, much of it from a cloud-services miss, and instead focused on the large number of big cloud-computing contracts in the future.
"Oracle signed sales contracts for more than $48 billion in Q3," Oracle Chief Executive Safra Catz said in a statement. Oracle $(ORCL)$ said that it signed cloud agreements with several big technology companies including OpenAI, xAI, Meta Platforms $(META)$, Nvidia Corp. $(NVDA)$ and Advanced Micro Devices Inc. $(AMD)$.
Earlier this year, Oracle was part of the big "Stargate" deal with OpenAI, which plans to build a major data center in Texas. Oracle is one of those providers, but it has yet to specify its share of the contract, which was originally touted as a $500 billion infrastructure investment.
In the fiscal third quarter, Oracle reported total revenue of $14.1 billion, up 6%, down from analysts' consensus estimates of $14.4 billion. The company's cloud-services and support business came in at $11 billion, up 10% from a year ago, but analysts were expecting revenue of $11.2 billion, according to FactSet.
After a major rally in its shares last year based on the company's momentum in artificial intelligence, Oracle shares have been trading down this year, and are down about 10% year to date. At one point its shares gained nearly 4% in after-hours trading, but then fell back, and were last up around 1.5%.
-Therese Poletti
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March 10, 2025 16:50 ET (20:50 GMT)
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