Oracle Rallies In Pre-market On Upbeat Q3 Results

(RTTNews) - Shares of Oracle Corporation (ORCL) are rising more than 13 percent in pre-market trade on Tuesday at $129.32, after reporting better-than-expected earnings for the third quarter, reflecting increased demand for its AI infrastructure.

Net income for the third quarter increased to $2.401 billion or $0.85 per share from $1.896 billion or $0.68 per share in the same quarter a year ago, primarily helped by growth in cloud services revenue.

Excluding one-time items, earnings were $4 billion or $1.41 per share, that beat the average estimate of 22 analysts polled by Thomson-Reuters of $1.38 per share.

Quarterly revenues were up 7% year-over-year to $13.28 billion. The consensus estimate was for $13.31 billion.

Cloud services revenue increased to $5.054 billion from $4.053 billion last year.

"Large new cloud infrastructure contracts signed in Q3 drove Oracle's total Remaining Performance Obligations up 29% to over $80 billion—an all-time record," said Oracle CEO, Safra Catz."

"We expect that 43% of our current $80 billion of Remaining Performance Obligations will be recognized as revenue over the next four quarters, and that our Gen2 Cloud Infrastructure business will remain in a hypergrowth phase—up 53% in Q3—for the foreseeable future."

The company's Board has declared a quarterly dividend of $0.40 per share, to be paid on April 24 to stockholders of record on April 10, 2024.

Oracle shares had closed at $114.13, up 1.52 percent on Monday. The stock has been trading in the range of $82.08 - $127.54 in the last 52 weeks.