Oracle Shares Rise as AI Infrastructure Demand Drives Revenue Growth
4 sources across 3 countries · Brazil · Argentina · United Kingdom
Who reported this
- CNN Brasil
- Folha de S.Paulo
- Infobae
- Reuters
What the colours mean
- Left
- Centre-left
- Centre
- Centre-right
- Right
- A hatched block means the outlet is affiliated with, or controlled by, a state.
Political lean describes where an outlet sits within the politics of its own country. It is never a position on a single global scale.
Political lean is comparable inside one country and not across them, which is why the bar groups by country first. Publicly funded broadcasters are not marked as state-linked.
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Oracle shares rose between 4% and 6.25% in after hours trading following the release of first fiscal quarter results that exceeded analyst expectations. Total revenue grew 30% to approximately US$ 19.3 billion, while the company's cloud infrastructure sales surged 121% to US$ 7.4 billion. Net profit for the quarter reached US$ 4.76 billion, representing a 60% increase over the previous year. The company reported signing US$ 30 billion in new cloud contracts for artificial intelligence during the quarter, bringing its total portfolio to US$ 664 billion.
To support this growth, Oracle is aggressively expanding its data center capacity. The company added 850 megawatts of capacity this quarter and delivered six of eight buildings dedicated to OpenAI at its Texas campus. However, this expansion comes with significant costs. Capital expenditures reached US$ 28.5 billion, and the company reported a negative free cash flow of US$ 5 billion for the first quarter. Oracle has completed a US$ 20 billion sale of shares as part of a larger US$ 50 billion funding package to finance these projects.
Outlets with a center lean highlighted the high risk and financial strain of this transition, noting a credit rating downgrade by S&P and concerns from analysts about the company's dependence on a few large clients. In contrast, a center right outlet focused more on the company's successful reinvention and the introduction of new hybrid AI solutions designed for regulated industries. The company has reaffirmed its full year revenue forecast of at least US$ 90 billion.
How each side framed it
- Centre
- Focused on the financial risks, high capital expenditures, and credit rating concerns associated with the AI pivot.
- Centre-right
- Emphasized the successful business reinvention and the strategic value of new hybrid cloud products.
Sources
- Centre CNN Brasil: Oracle has 60% rise in 1st fiscal quarter profit, at US$ 4.76 billion
- Centre Folha de S.Paulo: Oracle revenue from data centers surges with acceleration of AI strategy
- Centre-right Infobae: Oracle shoots up its cloud infrastructure revenues by 121% driven by AI
- Centre Reuters: Oracle tops estimates as AI demand tempers cash-burn fears - Reuters
100% of the statements in this article were traced back to the source articles listed above.