Oracle Corporation (NYSE: ORCL) is expected to report its fourth-quarter results on March 10, after the close of regular trading hours. The tech giant is actively enhancing its artificial intelligence capabilities, taking advantage of its extensive cloud infrastructure to deliver advanced AI-powered solutions to customers.
Oracle’s stock has lost about 16% since hitting an all-time high in November and closed the last session above its 52-week average of $150.46. The recent price drop presents a potential buying opportunity for long-term investors. ORCL has been an investors’ favorite, thanks to the company’s growing prowess in cloud computing.
Oracle is all set to report third-quarter results on Monday, March 10, at 4:05 pm ET. It is estimated that Q3 earnings, excluding special items, increased to $1.49 per share from $1.41 per share in the year-ago quarter. The consensus revenue estimate is $14.4 billion, representing an 8.4% year-over-year increase. The company’s earnings beat analysts’ estimates in two of the trailing four quarters and missed on two occasions including the second quarter. Meanwhile, quarterly revenues remained broadly in line with the market’s expectations during that period.
In the November quarter, revenues increased to $14.1 billion from $12.94 billion in the same period last year. Excluding special items, earnings were $1.47 per share in the second quarter, compared to $1.34 per share in the prior-year quarter. The company reported an unadjusted net income of $3.15 billion or $1.10 per share for Q2, vs. $2.50 billion or $0.89 per share last year. Both earnings and revenue missed estimates. The accelerated revenue growth is driven by Cloud Services & License Support, the company’s largest and fastest-growing revenue component which represents around 77% of the total.
A combination of strong database and cloud capabilities enables the company to compete effectively with other leading players like Amazon Web Services and Microsoft Azure. The Oracle leadership expects capital spending in fiscal 2025 to be double that of FY24, considering the strong order book and additional demand in the pipeline. The company is expected to significantly benefit from its participation in the US government’s Stargate project, a collaborative effort to build advanced AI-focused data centers. This project could potentially attract hundreds of billions of dollars in investment by 2029.
Commenting on the AI initiatives, Oracle’s CTO Larry Ellison said at the Q2 earnings call, “The Oracle Cloud trains dozens of AI models and embeds hundreds of AI agents in cloud applications. Oracle’s AI agents automate drug design, image and genomic analysis for cancer diagnostics, audio updates to electronic health records for patient care, satellite image analysis to predict and improve agricultural output, fraud and money laundering detection, dual-factor biometric computer logins, and real-time video weapons detection in schools.”
Oracle’s stock has gained about 10% in the past six months. The shares began the week quietly and traded lower throughout Tuesday’s session.
The post Earnings Preview: Oracle (ORCL) leverages AI power to fast-track growth first appeared on AlphaStreet.
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