Cloud demand continues to drive Oracle’s growth. The US cloud giant’s earnings release on Monday further confirmed the company’s strong form, beating Wall Street estimates for quarterly profit and revenue amid massive corporate data migration to cloud platforms.
Revenue for the fourth quarter of the company’s staggered fiscal year, ended May 31, reached $11.84 billion, up 5% year-on-year, well above forecasts set by the analysts.
The company’s cloud arm (including IaaS and SaaS) recorded $2.9 billion in revenue over the same period, up 19% year-on-year. “This fourth quarter, we also experienced a significant increase in demand in our infrastructure cloud computing business. We believe this spike in revenue growth indicates that our infrastructure business has now entered a phase of hypergrowth,” Oracle CEO Safra Catz said when releasing the results.
Cerner Integration
The company, which reported an unfavorable foreign exchange effect of 5% in the fourth quarter, compared to 2% to 3% in the third quarter, indicated that it expected substantial growth in revenue from its cloud business. “despite an economic situation plagued by rising inflation.
Oracle will notably be able to count on the integration of the activities of Cerner, a supplier of digital information systems used in the field of health, to support its growth. This specialist in clinical and health IT systems was acquired for 23.8 billion dollars at the end of last year.
Oracle is not the only player surfing on the massive enthusiasm of companies for the cloud. Rivals Microsoft and Salesforce also posted negative results as many companies increase their cloud spending in the wake of the health crisis. Note that Oracle has calculated its losses at $100 million per quarter following its departure from Russia, in the wake of the Russian invasion of Ukraine.