Oracle Q4 Results: Oracle shares hit record highs! Will the momentum continue?

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Oracle Q4FY23 results

Oracle Q4 results: Key insights

  1. Oracle topped fourth-quarter revenue estimates and forecast an upbeat first quarter.
  2. Oracle revenues taking support from a robust jump in demand for cloud computing offerings amid higher AI demand among companies. 
  3. The firm partnered with Nvidia to provide its AI chips to Oracle customers, boosting revenues during the Jan-March 2023 period.
  4. Oracle’s revenue jumped about 17% to $13.84 billion, beating analysts' estimates. 

Oracle share price and Oracle results:

Oracle shares jumped 6% on May 12, 2023 and are expected to open 4% higher on May 13, 2023 . Oracle shares have gained about 42% so far this year and is among the top performing shares among technological peers. 

Cloud and software service providers have had a rather tough year as soaring interest rates led technology firms to undertake heavy cost cutting mechanisms. Soaring interest rates also led to an economic slowdown in the US.

However, ever since the rising demand for AI related services from customers, cloud computing providers like Oracle have witnessed a steep rise in their share prices. 

Oracle share historical performance:

1 Day1 Month1 Year5 Years

(Data as on June 12, 2023)

Decoding Oracle Q4 earnings:

Oracle Revenue

Oracle's revenue for the fourth quarter jumped about 17% to $13.84 billion, beating analysts' estimates of $13.74 billion for the quarter ending May 2023.

According to a report by Reuters, analysts believe Oracle Cloud Infrastructure (OCI) has a strong potential to emerge as a significant AI/ML development platform, thanks to its collaboration with Nvidia. This could contribute to the company's growth in a new direction.

 Q4FY23Q4FY22% change
Total Revenue$13.8 billion$11.8 billion17%

Oracle net profit

Oracle reported quarterly net income of $3.3 billion, 4% higher. Profits surged due to a one time tax benefit the company received during the quarter.  

Oracle expects cloud revenue, excluding Cerner, to grow at least at similar rates in fiscal 2024 as in 2023, Chief Executive Safra Catz.

 Q4FY23Q4FY22% change
Net Profit$3.3 billion$3.2 billion4%

Oracle dividend

The board of directors declared a quarterly cash dividend of $0.40 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on July 12, 2023, with a payment date of July 26, 2023.

Oracle share price target

  • Brokerage Evercore ISI raised its share price target to $125 to $110. 
  • Brokerage Barclays hiked its share price target to $123 from $116. 
  • Jefferies hiked its share price target to $135 to $125.
  • Broker DA Davidson raised its share price target to $115 from $85. 

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.