Oracle raises full year profit guidance, stock rises after hours

Investing.com -- Oracle (NASDAQ: ORCL) on Thursday delivered a quarterly top- and bottom-line beat and raised its fiscal full year profit guidance.

Shares of the company climbed 6.6% after hours.

Austin, Texas-based Oracle in recent years has turned its focus to cloud computing infrastructure, while its core offerings such as database software and enterprise applications for finance continue to bring in revenue. But worries have abounded over the impact that artificial intelligence can have on ORCL’s core business.

Oracle has attempted to quell investor concerns by becoming a major player in the development of data centers to support AI workloads, turning into a so-called hyperscaler. Its performance is seen as a publicly traded proxy for the AI infrastructure buildout, with its Oracle Cloud Infrastructure (OCI) unit competing directly with Amazon’s AWS, Microsoft’s Azure, and Google’s cloud offerings.

However, jitters remain about the amount of debt the company has been raising to fund its data center ambitions. Its low backlog conversion rate and a negative free cash flow for five straight quarters have also been under severe scrutiny.

ORCL earned $1.92 per share on an adjusted basis on revenue of $19.35 billion for its fiscal Q1 2027. Analysts had expected a profit of $1.73 per share on revenue of $19.13 billion.

Looking at its guidance, on a constant currency basis, the firm sees Q2 adjusted earnings per share of $1.83 to $1.91 on revenue growth of 30% to 34%. Analysts had expected a profit of $1.89.

For the full fiscal year 2027, ORCL now sees adjusted earnings per share of $8.10 on revenue of at least $90 billion, compared to a previous forecast of profit of $8.05 per share on revenue of $90 billion.

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