Proactive Investors - Oracle Corp (NYSE:ORCL, ETR:ORC) shares flew higher afterhours Tuesday as the company disclosed new partnerships with Google (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and OpenAI.
Despite a fiscal 4Q earnings miss, Oracle's shares surged following the announcement, buoyed by significant deals with the tech giants.
Oracle and Google Cloud unveiled a multicloud partnership, wherein Google Cloud will provide Oracle Cloud Infrastructure database services and high-speed network capabilities.
And Oracle, Microsoft, and OpenAI are collaborating to expand Microsoft Azure AI capabilities to Oracle Cloud Infrastructure (OCI) to support OpenAI's scaling needs, with OCI being chosen for its speed and cost-effectiveness.
The news sent Oracle shares up almost 8% afterhours despite missing estimates on the top and bottom line.
During its fiscal fourth quarter, Oracle saw a notable increase in cloud revenue, with a 20% rise in cloud revenue overall. Cloud infrastructure revenue soared by 42%, while cloud application revenue experienced a 10% uptick.
The software company’s fiscal 4Q earnings, however, fell short of analysts' estimates with adjusted EPS of $1.63 missed the estimated $1.65 and sales of $14.3 billion below the estimated $14.55 billion.
Looking ahead, Oracle projects each successive quarter in fiscal year 2025 to outpace the previous one in terms of growth. The company revealed signing over 30 artificial intelligence (AI) sales contracts in Q4, totaling more than $12.5 billion.