OFSS Stock Retreats After Rally, Parent Oracle’s Earnings To Have No Direct Impact

Shares of Oracle Financial Services Software (OFSS) reversed early gains and slipped into the red on September 11 as investors rushed to book profits after the company clarified that its parent Oracle Corp’s quarterly earnings would have no direct bearing on its operations.

“Please note that OFSS is a subsidiary of Oracle Corporation and its first quarter results have no direct impact on our business,” the company said. In a separate filing to the stock exchanges, OFSS added: “We hereby clarify that there is no unpublished event or information or announcement relating to operation or performance of the company which is required to be disclosed to the stock exchange(s) that may have a bearing on the price/volume of the shares of the company.”

The clarification came after OFSS shares had surged nearly 10% in the previous session, fuelled by investor optimism following parent, Oracle Corp’s strong results.

On Wall Street, Oracle shares soared 36% in Wednesday’s trade, their steepest single-day gain since 1992, lifting the software giant’s market capitalisation close to $1 trillion. The rally temporarily vaulted co-founder Larry Ellison to the top of the global rich list, briefly overtaking Elon Musk. The surge also boosted AI-linked names such as chipmaker Nvidia Corp and several Asian component suppliers.

Oracle’s rally followed an ambitious forecast for its cloud infrastructure business, which it expects to generate more than half a trillion dollars in booked revenue as demand for cost-efficient cloud services rises. “Over the next few months, we expect to sign up several additional multi-billion-dollar customers and RPO is likely to exceed half a trillion dollars,” said Oracle CEO Safra Catz.

For the September quarter, Oracle projected total revenue growth of 12–14% and cloud revenue growth of 32–36%. Catz highlighted that the company had made it easier for clients to connect databases to leading AI reasoning models such as ChatGPT, Gemini and Grok, all of which are available on the Oracle Cloud.

Oracle also forecast cloud infrastructure revenue to climb 77% to $18 billion in the current fiscal year, and to $144 billion over the next four years.