The technology company Oracle exceeds expectations and breaks records for profits and revenue

BarcelonaThe American multinational technology corporation Oracle has closed a record-breaking first quarter in which, literally, accounting and financial indicators have hit highs. In the first three months of its fiscal year, which ended on August 31, the company specializing in data centers saw its profits soar by 60% compared to the same period last year, earning 4.679 billion dollars – about 4.032 billion euros.

Adrián Hostaled, an analyst at the online investment brokerage XTB, points out that investors are keeping a close eye on three indicators: profits – already mentioned –, investments to improve long-term assets – known as CAPEX –, and the signing of new agreements to contract its services. Of the three, profits is the area of least importance to the market, warns Hostaled.

On one hand, the quarter has broken a record not only in profits but also in investment. Markets are concerned about the high level of CAPEX or, in other words, they are worried about the high volume of capital that the company's activity requires, despite it being a generalized reality in the sector of data center and cloud technology specialists.

During the first quarter of the fiscal year, Oracle spent 28.5 billion dollars, although the company highlighted that 11.36 billion of that was covered by client prepayments. Sales have grown by 30%, reaching 19.3 billion dollars, but more is still going out than coming in, so the cash flow has remained in the red.

This has happened because, despite the good results, Oracle is "dragging through a bad 2026" on the stock market and, compared to September a year ago, its shares have lost 50% of their value.

Preparing for the future

On the other hand, Oracle has managed to close more than 30 billion dollars in new contracts to provide service to companies dedicated to artificial intelligence (AI), a fact that increases its revenue backlog to 664 billion dollars, above analysts' estimates.

It seems, therefore, that as of August 31, Oracle has also paved the way for the future. "The market will have patience with the company," predicts Hostaled, who assures that the company's stock market value "could perfectly rise between 20% and 30% within a year."

The increase in hiring led by Oracle is part of a global context in which the demand for AI training and inference services is still growing faster than the supply. Hostaled has stressed that the company is "in a much better situation" than the market would have imagined a couple of years ago, because "it is growing".

Cloud services skyrocket

The cloud is the business segment that generates the most revenue –growing by 60%, to 11.607 billion dollars–, driven by the growth of Oracle's cloud computing platform, which has grown by 121%. Basically, it allows companies to use IT infrastructure over the internet, instead of having to own their own servers.

Meanwhile, the software division declined slightly –it billed 3% less, 5.550 billion dollars–. Looking ahead to the next quarter, Oracle also expects record numbers. It expects cloud segment revenue to continue growing, up to an increase of 71%. Regarding total revenue, it estimates increases ranging between 30% and 34%.