- Oracle’s adjusted revenue for the second quarter was $16.06 billion, reflecting a 14% increase year-over-year, slightly below the estimate of $16.21 billion.
- Revenue in constant currency grew by 13%, also just shy of the 14.6% estimate.
- Adjusted earnings per share (EPS) increased to $2.26 from $1.47 the previous year, surpassing the estimated $1.64.
- Cloud revenue, which includes Infrastructure as a Service (IaaS) and Software as a Service (SaaS), reached $8.0 billion, up 36% year-over-year, narrowly missing the $8.04 billion forecast.
- Cloud Infrastructure revenue (IaaS) surged by 71% year-over-year, totaling $4.1 billion, aligning closely with the $4.09 billion estimate.
- Cloud Application revenue (SaaS) amounted to $3.9 billion, marking an 11% increase year-over-year, matching expectations.
- Software revenue declined by 3.1% to $5.88 billion, falling short of the $6.03 billion estimate.
- Hardware revenue rose by 6.6% to $776 million, exceeding the expected $716.7 million.
- Service revenue grew by 7.4% to $1.43 billion, outperforming the $1.36 billion projection.
- Adjusted operating income stood at $6.72 billion, up 10% year-over-year, but lower than the $6.82 billion estimate.
- The adjusted operating margin was reported at 42%, slightly down from 43% last year and a marginal miss on the 42.2% estimate.
- Remaining performance obligations surged to $523 billion from $97 billion year-over-year.
- Oracle’s earnings were boosted by a $2.7 billion pre-tax gain from selling its interest in the Ampere chip company.
- The company recognizes the significant changes expected in AI technology and highlights the need to remain agile.
- Market sentiment includes 36 buy ratings, 12 holds, and 2 sell ratings on Oracle’s stock.
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Oracle Corp on Smartkarma
Analyst coverage of Oracle Corp on Smartkarma provides valuable insights from independent experts. Baptista Research highlights Oracle’s deepening AI infrastructure ambitions in the $38 billion Jacquard Project, where Oracle plays a central role in developing AI data centers in Texas and Wisconsin. The company’s commitment to a $300 billion purchase contract with OpenAI showcases its position as a critical AI infrastructure provider.
On the flip side, Douglas Kim raises concerns about Oracle Korea’s uncertainty due to a 1.4 trillion Won tax dispute and excessive leverage. Despite Baptista Research‘s bullish outlook on Oracle’s $144 billion Cloud Bet, Fallacy Alarm questions Oracle’s cloud ambitions compared to industry giants. With conflicting views, investors must carefully weigh the positive growth prospects with potential risks surrounding Oracle’s future performance.
A look at Oracle Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have provided Smart Scores for Oracle Corp, indicating a positive long-term outlook for the company. With a growth score of 4, Oracle is seen as having strong potential for expansion in the future. This is supported by its resilience score of 3, suggesting the company’s ability to withstand challenges. Additionally, the momentum score of 3 indicates a positive trend in the company’s performance.
Although Oracle scores lower on the value and dividend factors with scores of 2 each, the higher scores in growth, resilience, and momentum point towards a promising future for the company. Oracle Corporation is a key player in the software industry, supplying a range of enterprise information management solutions. Its diverse product offerings cater to various devices, from PCs to mainframes, positioning Oracle well for continued growth and success in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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