Oracle's Q4 Results Are a Sign of Things to Come: The Company Is Well-Positioned for the Future

Discover how Oracle's Q4 results shattered expectations, sending shares to record highs. Find out what this means for investors and the tech industry.

• Revenue up 17% to $13.84 billion.
• Partnered with Nvidia to provide AI chips.
• Net income up 4% to $3.3 billion.
• Cloud revenue to grow in fiscal 2024.
• Quarterly cash dividend of $0.40 per share.

Oracle Corporation has reported better than expected earnings for the fourth quarter, with revenue jumping about 17% to $13.84 billion. The company's success has been largely attributed to the growing demand for its cloud services, which have seen a surge in popularity in recent years. As a result, Oracle's shares have hit record highs, leaving investors wondering whether the momentum will continue. In this article, we'll take a closer look at Oracle's Q4 results and what they mean for the tech industry and investors alike.

Share prices of the company:

Over the past year, the stock prices have increased by 24.8%, followed by a 23.5% increase in the last six months and a 7.6% increase in the last month.

Also Read: Rakesh Jhunjhunwala's portfolio tech stock has huge upside potential as per the experts- Click to know more!

Highlights of Q4 results are presented below.

• The company experienced a revenue increase of approximately 17% to $13.84 billion for the quarter, driven by the rising demand for its cloud services.
• The firm partnered with Nvidia to provide its AI chips to Oracle customers, boosting revenues during the Jan-March 2023 period.
• Oracle announced a quarterly net income of $3.3 billion, reflecting a 4% increase. The surge in profits can be attributed to a onetime tax benefit that the company received within the quarter.
• Oracle CEO Safra Catz expects the company's cloud revenue to grow at least as fast in fiscal 2024 as it did in fiscal 2023, excluding the impact of its acquisition of Cerner.
• A quarterly cash dividend of $0.40 per share of outstanding common stock has been declared by the board of directors. Stockholders who are recorded as of the close of business on July 12, 2023, will receive this dividend, with a payment date set for July 26, 2023.

Also Read: Gen Z Stock Market Participation Surges, Thanks to Tech Innovations and Digital Experience

Oracle Cloud Infrastructure (OCI) has the potential to become a major AI/ML development platform, according to analysts. This is due to its collaboration with Nvidia, which will provide OCI with access to Nvidia's powerful GPUs and software. This partnership could help OCI to attract new customers and grow its business in a new direction.

"Over 30 AI development companies, including Mosaic ML, Adept AI, and Cohere, have signed contracts worth $2 billion for Oracle's Gen2 Cloud," stated Oracle's chairman and CTO, Larry Ellison.

Oracle's Q4 results have shown impressive growth in revenue, driven by the increasing demand for its cloud services. The company's partnership with Nvidia has also opened up new opportunities for growth in the AI/ML development platform. However, the company will need to continue to innovate and adapt to stay ahead of competitors in the highly competitive tech industry.

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.

Click here for the latest articles on Stocks