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Oracle shares rise 7% on cloud earnings
Oracle's stock rose by 7% at the start of trading, following a 30% year-over-year increase in revenue for the fiscal quarter ending August 31, with net profits reaching $4.68 billion. The growth is primarily driven by data center expansions and a 62% increase in cloud computing revenue, which reached $11.61 billion, along with the doubling of cloud infrastructure revenue to over $7.4 billion. Despite these positive results, the company faces challenges such as a weak cash position compared to competitors, with debts totaling $125 billion and free cash flow declining into negative territory at $5.4 billion. The company expects its adjusted earnings per share in 2027 to reach $8.10, with revenues of at least $90 billion. It continues to invest heavily in artificial intelligence, with contracts valued at over $30 billion, including a US Department of Defense contract worth up to $7 billion.
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