Surging cloud revenue boosted Oracle’s quarterly results. Here’s what analysts are saying
The software giant reported a surge in cloud infrastructure revenue during its latest quarter. Here's what Wall Street analysts are saying.
TL;DR
- Oracle's fiscal first-quarter revenue reached $19.35 billion, a nearly 30% increase year-over-year.
- Cloud revenue grew 62%, with cloud infrastructure revenue jumping 121%.
- The company added 850 megawatts of data center capacity and booked over $30 billion in new AI cloud contracts.
- Remaining performance obligations increased by $209 billion year-over-year to $664 billion.
- Oracle expects total revenue for fiscal year 2027 to be at least $90 billion.
- Analysts from Morgan Stanley, Citi, Bernstein, Deutsche Bank, Wells Fargo, Barclays, UBS, Bank of America, and JPMorgan provided diverse price targets and ratings, with most expressing optimism about Oracle's cloud and AI growth trajectory.
- Concerns were noted regarding gross margin pressure, the economics of GPUaaS, and visibility on infrastructure build-out, though the completion of a $20 billion ATM equity program was seen positively.