Shares of Oracle Financial Services Software shot up 10% on September 10, riding high on its parent company, the NYSE-listed Oracle Corp’s strong quarterly show and ambitious growth targets.
Oracle Corp issued an ambitious outlook for its cloud business, sending its shares to a record high overnight. The US company forecasted its booked revenue for the Cloud Infrastructure business to exceed half a trillion dollars on rising demand for low-cost cloud services.
"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 CEO Safra Catz.
For the September quarter, Oracle anticipates total revenue to rise to 12-14% and sees cloud revenue growth between 32-36%. "We made it very easy for our customers to directly connect all their databases ... to the world's most advanced AI reasoning models — ChatGPT, Gemini, Grok, all of which are uniquely available in the Oracle Cloud," Oracle CEO Catz said during the earnings call.
Oracle also forecasted its cloud infrastructure revenue to surge 77% to $18 billion in the ongoing fiscal year and $144 billion over the subsequent four years.
The solid growth outlook painted by Oracle Corp wooed investors, who took the stock 28% higher during post-market hours in the US, marking the steepest single day gains for the stock since 1999.
If Oracle Corp's market rally sustains during the trading session on September 10, the company would surpass JPMorgan Chase, Walmart, Eli Lilly and Visa in terms of market capitalisation.
Back home, OFSS is riding the same wave of optimism, buoyed by growing appetite for its cloud-based banking solutions. The company reported a 13% rise in licence and cloud revenue in the past fiscal year.
“Cloud-based solutions enable organisations to focus on smaller initiatives that deliver tangible, incremental value,” OFSS Managing Director and Chief Executive Officer Makarand Padalkar told shareholders at the company’s recent annual meeting. “They allow businesses to optimise their operations step by step, enhance efficiency, and significantly reduce transformation risk.”
