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Oracle shares climbed on Tuesday after the company posted better than expected earnings and gave a robust forecast for its long-term revenue as it pursues a big bet on AI data centres.
The database group founded by Larry Ellison said revenues in its third quarter rose 22 per cent year on year to $17.2bn, beating Wall Street forecasts of $16.9bn.
It also raised its forecast to $90bn in revenue in its 2027 fiscal year, ahead of market expectations.
Oracle has launched an aggressive bid to compete with larger rivals such as Amazon and Microsoft to supply computing power to AI companies.
It struck a huge deal last year with OpenAI but has faced growing concern about its reliance on the ChatGPT maker as a customer and a big increase in borrowing — with its shares down more than 50 per cent since their peak last autumn.
Its long-term debt, including operating leases, rose to $143bn while its capital expenditures in the quarter increased more than 50 per cent to $18.6bn — more than analysts’ estimates compiled by Visible Alpha.
Total bookings for future revenue, known as remaining performance obligations, increased to $553bn in the three months to the end of February, while net income was broadly in line with expectations at $3.7bn.
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