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Oracle headquarters in Redwood Shores, Calif., in 2023. Long known for database software and enterprise applications for finance, Oracle has repositioned itself as a cloud computing infrastructure competitor.Justin Sullivan/Getty Images
Oracle ORCL-N beat Wall Street estimates for third-quarter revenue on Tuesday, as robust demand for its cloud computing services, driven by the artificial intelligence boom, helped the company compete against larger rivals.
Shares of the Austin, Texas-based company rose 6 per cent in extended trading.
Long known for its database software and enterprise applications for finance, Oracle in recent years has repositioned itself as a cloud computing infrastructure competitor after recruiting key executives from rivals.
The company’s strategy to build out data centres is helping it capture a slice of the booming AI market. Oracle has been aggressively spending to expand its cloud infrastructure to support generative AI workloads, competing for customers against hyperscalers such as Amazon’s AWS and Microsoft’s Azure.
The company reported total revenue of US$17.19-billion for the quarter, compared with analysts’ average estimate of US$16.91-billion, according to data compiled by LSEG.
Remaining performance obligations, a key indicator of future contracted revenue, stood at US$553-billion, ahead of the US$540.37-billion estimate from four Visible Alpha analysts.
