Oracle, also known as ORCL, has recently released its financial results for the first quarter of 2025. The company’s shares surged by 9% in after-hours trading following the announcement of results that exceeded expectations set by Wall Street analysts.
Key highlights of Oracle’s performance compared to market consensus include an adjusted earnings per share of $1.39, surpassing the expected $1.32, and a revenue of $13.31 billion, higher than the anticipated $13.23 billion. This reflects an 8% revenue growth from the previous year, with net income rising to $2.93 billion.
At a trading price of around $153 after hours, Oracle is poised to achieve a record high. Previously, its highest closing price was $145.03 in July. Before this latest financial report, Oracle had already seen a 34% increase in its stock value this year, outperforming the S&P 500’s growth of 15%.
Looking ahead, Oracle’s CEO, Safra Catz, projected a revenue growth of 8 to 10% for the upcoming quarter. The company expects adjusted earnings per share in the range of $1.45 to $1.49, slightly differing from analysts’ predictions. Oracle’s revenue from cloud services and license support reached $10.52 billion, exceeding market expectations.
Oracle’s diversified revenue streams showed strength, with the cloud and on-premises license segment generating $870 million, a 7% increase. Revenue from cloud infrastructure experienced remarkable growth of 45%, reaching $2.2 billion. CEO Catz noted that demand continues to outpace supply, indicating a healthy market for Oracle.
During the earnings call, Larry Ellison, Oracle’s co-founder, discussed the company’s ambitious plans for data centers. Oracle is designing a data center that will use over a gigawatt of power, powered by modular nuclear reactors. Ellison envisions expanding Oracle’s data centers to 2,000, emphasizing energy efficiency, with some facilities operating at just 50 kilowatts.
Furthermore, Oracle announced strategic initiatives, including the expansion of cloud regions and partnerships with tech giants like Google and Amazon Web Services. These collaborations aim to enhance Oracle’s cloud offerings and broaden its market reach.
Oracle’s first-quarter results underscore its strong performance and strategic vision for future growth and innovation in the technology sector.
Source: CNBC
