Oracle and its quarterly profit and revenue beat Wall Street expectations, as demand for its cloud solutions climbs amid an industry-wide transition to cloud-based systems.
According to IBES statistics from Refinitiv, revenue for the fourth quarter ended May 31 increased to US$11.84 billion, exceeding analysts’ average forecast of US$11.66 billion.
Oracle CEO Safra Catz said in a statement that “we believe this revenue growth increase suggests that our infrastructure business has now entered a hyper-growth period.”
Oracle forecasts substantial revenue growth in its cloud business despite growing inflation and a stronger US dollar, despite a currency headwind of 5% in the prior quarter, up from two to three percent in the third quarter.
Microsoft in April and Salesforce last month both predicted a bright future for the cloud industry as businesses ramp up expenditure, but the former lowered its fourth-quarter profit and revenue prediction owing to unfavourable exchange rates earlier this month.
Oracle warned that stopping services in Russia will cost them US$100 million (A$144 million) per quarter in fiscal year 2023.
The business, on the other hand, predicts 17 percent to 18 percent sales growth in the first quarter, thanks to its US$28 billion acquisition of healthcare IT giant Cerner.
Oracle’s prognosis comes on the heels of a day when US equity markets plunged, with the S&P 500 confirming it was in a bear market, as investors fear the Federal Reserve’s aggressive interest rate hikes will send the US into recession.
