Oracle Corp. showcased significant growth potential driven by new cloud data center contracts, despite falling short of Wall Street’s revenue and profit expectations. The tech giant reported quarterly revenue of $14.93 billion, a 12% increase year-on-year, but below the anticipated $15.04 billion. Net income remained steady at $2.93 billion, equating to $1.01 per share, while adjusted earnings missed forecasts at $1.47 per share. Notably, Oracle’s remaining performance obligation surged to $455 billion, largely due to a $30 billion deal with OpenAI for cloud services. This alliance is part of the ambitious Stargate project, which involves substantial data center capacity to support AI initiatives. Oracle’s CEO, Safra Catz, announced multiple multi-billion-dollar contracts in the past quarter, highlighting increasing demand for Oracle Cloud Infrastructure. The company’s shares rose 27% post-earnings announcement, signaling strong market confidence in its growth trajectory amid the ongoing AI boom.
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