Oracle beats revenue estimates: share price soars after stock exchange
The group reported revenues of $17.19 billion in the quarter, while analysts had expected 'only' $16.91 billion
On Wall Street, a few minutes after the close of trading, good news arrived. Oracle beat analysts' forecasts for third quarter revenue. Driving the jump in revenue was robust demand for its cloud computing services driven by the artificial intelligence boom. The numbers prove it: the group posted total revenues of $17.19 billion in the quarter, while analysts were expecting a more modest $16.91 billion on average, according to data compiled by LSEG.
The result sent the Austin, Texas-based group's stock up 6% in after-hours trading. And on a day when the US stock market closed slightly lower, this is news that could help the stock price at today's reopening. Oracle's strategy of jumping aggressively into expanding its cloud infrastructure to support artificial intelligence (and take advantage of its boom) is therefore rewarding the group.
Remaining performance obligations (RPO), a key indicator for predicting future earnings, stood at $553 billion: more than the $540.37 billion estimated by analysts. Today we will see the reaction on Wall Street.
