Oracle surpassed Wall Street projections for its first fiscal quarter revenue and increased its annual profit forecast, growth attributed to high demand for cloud computing services focused on artificial intelligence (AI).
The company's revenue reached US$ 19.3 billion (approximately BRL 101.3 billion), representing a 30% increase. This figure was above the average expected by analysts, who projected US$ 19.14 billion (about BRL 100.4 billion), according to data provided by LSEG.
Consequently, following the release of the financial results, Oracle's shares rose by almost 7% in after-hours trading.
A notable point in the financial report was the deferred revenue backlog, which reached US$ 664 billion (about BRL 3.49 trillion) at the end of the quarter. This amount represents an advance compared to the US$ 638 billion (about BRL 3.35 trillion) recorded three months earlier, exceeding analysts' expectation of US$ 639.89 billion (about BRL 3.36 trillion).
These indicators suggest that the significant investments made by Oracle in data centers are beginning to generate new contracts, capitalizing on the competition between companies for adequate infrastructure to meet the growing demand for AI.
Hilary Maxson, Oracle's Chief Financial Officer, clarified that most of the contracted revenue during the period will not require large additional capital injections from the company for chip acquisition. She justified that most of these orders were placed via prepayment, use of the client's own hardware, or similar methods, dispensing with extra capital from Oracle.
The executive also mentioned that the company observed a strong conversion of its contract portfolio into revenue this quarter, which positively contributed to the cloud infrastructure results. To meet the demand, Oracle put 850 megawatts of new capacity into operation between June and August.
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In July, S&P Global downgraded Oracle's credit rating, citing weak cash flow and increased inherent business risks.
Additionally, concerns persist regarding the Stargate project due to reports of delays related to infrastructure construction, labor shortages, licensing difficulties, and energy access restrictions.
Despite these apprehensions, Oracle raised its adjusted earnings per share forecast for the 2027 fiscal year, from US$ 8.05 (about BRL 42.30) to US$ 8.10 (about BRL 42.60), surpassing the analysts' estimate of US$ 8.07 (about BRL 42.40) per share. The company also forecasts a minimum revenue of US$ 90 billion (about BRL 472.5 billion) for the 2027 fiscal year.
Looking at the second quarter, Oracle projects that revenue will grow between 30% and 34%, and adjusted earnings will be between US$ 1.85 (about BRL 9.70) and US$ 1.93 (about BRL 10.10) per share, remaining in line with market expectations.