Oracle’s (ORCL) stock is up 6% after the software firm reported better-than-expected quarterly financial results.
The company posted earnings per share (EPS) of $1.92 U.S., which beat the $1.74 U.S. consensus expectation of analysts.
Revenue totaled $19.35 billion U.S., which topped the $19.14 billion U.S. that had been forecast on Wall Street. Sales were up nearly 30% from a year earlier.
Oracle’s forward guidance was also strong. Management said they expect earnings of $1.85 U.S. to $1.93 U.S. for the current quarter, along with revenue growth of 30% to 34%.
Analysts had been looking for earnings of $1.89 U.S. and revenue growth of 32% from the company.
Much of Oracle’s current growth is tied to artificial intelligence (A.I.) data centers, as the company tries to become a bigger player in the space.
But Oracle has a weaker cash position and a lower credit rating than its competitors. The company has $125 billion U.S. of debt and negative free cash flow of $5.4 billion U.S.
The company also said that its capital expenditures in the just completed fiscal first quarter rose to $28.50 billion U.S. from $8.50 billion U.S. a year earlier.
During the quarter, the company said it delivered 850 megawatts of power to A.I. data centers as it pivots away from its traditional software business.
The deteriorating financial situation has pressured Oracle’s share price. Over the last 12 months, ORCL stock has declined 50% to trade at $152.94 U.S. per share.
