\n<\/p>\n
Unlock the Editor\u2019s Digest for free<\/p>\n
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n Oracle\u2019s shares climbed 8 per cent on Tuesday after the database group posted better than expected earnings and gave a robust forecast for next year\u2019s revenue as it pursues a big bet on AI data centres. <\/p>\n Oracle, co-founded by Larry Ellison, said revenues in its fiscal third quarter rose 22 per cent year on year to $17.2bn, beating Wall Street forecasts of $16.9bn. <\/p>\n Cloud revenue for the Austin-based group came in above expectations at about $8.9bn in the quarter. The stock rose in after-market trading.<\/p>\n It also raised its forecast to $90bn in revenue in its 2027 fiscal year, ahead of market expectations.<\/p>\n Oracle credited strong \u201cdemand for cloud computing for AI training and inferencing\u201d with helping it \u201ccomfortably meet and likely exceed our revenue growth rate forecast for FY27 and beyond\u201d. <\/p>\n \u201cSome of the largest consumers of AI cloud capacity have recently strengthened their financial positions quite substantially,\u201d it added, after customers OpenAI and xAI secured fundraising deals in the quarter. <\/p>\n Oracle has launched an aggressive push to compete with larger rivals such as Amazon and Microsoft to supply computing power to AI companies. <\/p>\n It struck a huge deal last year with OpenAI but has faced growing concern about its reliance on the ChatGPT maker as a customer and a big increase in borrowing \u2014 with its shares down more than 50 per cent since their peak last autumn.<\/p>\n Its long-term debt, including operating leases, rose to $143bn while its capital expenditures in the quarter increased more than 50 per cent to $18.6bn \u2014 more than analysts\u2019 estimates compiled by Visible Alpha.<\/p>\n Total bookings for future revenue, known as remaining performance obligations, increased to $553bn in the three months to the end of February, while net income was broadly in line with expectations at $3.7bn.<\/p>\n Oracle has moved in recent months to assure investors that the vast projects it has committed to build are on track despite concerns that some sites are slipping behind schedule because of financing and regulatory hurdles. <\/p>\n The FT in December reported a crucial financial partner would not back a site in Michigan. The state\u2019s attorney-general has also moved to have regulators revisit that site\u2019s power plans. <\/p>\n Oracle\u2019s shares were hit by reports last week that OpenAI would not take up an option to expand its contract at a data-centre campus in Abilene, Texas. <\/p>\n The company has insisted its projects remain on track. Oracle last month raised $25bn through a blockbuster bond offering to help finance various data centres. <\/p>\n","protected":false},"excerpt":{"rendered":" Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Oracle\u2019s shares climbed 8 per cent on Tuesday after the database group posted better than expected earnings and gave a robust forecast for next year\u2019s revenue as it pursues a big bet on AI data<\/p>\n","protected":false},"author":1,"featured_media":46390,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[2529,1111,2213,12521,7696,5577,2228,4463],"class_list":{"0":"post-46389","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-centres","9":"tag-data","10":"tag-forecast","11":"tag-oracle","12":"tag-rally","13":"tag-revenue","14":"tag-shares","15":"tag-strong"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/46389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46389"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/46389\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/46390"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}