Oracle Cloud Sales Jump 121% as AI Build-Out Beats Estimates — SkimNews
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- Oracle's cloud infrastructure revenue jumped 121% to $7.4 billion in the fiscal first quarter, topping the $7.19 billion analyst consensus compiled by Bloomberg.
- Total quarterly sales climbed 30% to $19.3 billion, with adjusted profit of $1.92 per share beating the $1.75 estimate, prompting a roughly 4% after-hours share gain to $161.63 from a $152.94 close.
- Oracle completed its earlier-announced $20 billion at-the-market equity sale, a move several analysts had flagged heading into the report as a potential overhang on the stock.
- The data center build-out added 850 megawatts of capacity in the quarter, with projects tied to OpenAI and other AI customers central to the company's pivot from legacy database software.
- TD Cowen analyst Derrick Wood observed Oracle's stock had fallen 38% from its June 1 year-to-date high ahead of the print, driven by financing concerns, rising component costs, and reports of data center construction challenges.
- Oracle is now positioning itself as a provider of raw computing power for AI workloads rather than its traditional database identity, with Wall Street watching both the scale of capital spending and project delivery speed.
Why it matters: Oracle delivered a 121% cloud-infrastructure surge and a $0.17 EPS beat despite its 38% pullback since June, showing that the AI capex bets — including the $20 billion equity raise analysts had worried about — are now producing revenue fast enough to ease those financing fears.
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