Oracle Corp (NYSE:ORCL, ETR:ORC) shares were up in afterhours trading after announcing a new collaboration with Amazon Web Services and strong Q1 results.
Oracle Database@AWS is a new solution allowing customers to access Oracle’s Autonomous Database and Exadata Database Service on AWS infrastructure for streamlined database administration, billing, and customer support.
The Oracle Database@AWS will allow enterprises to connect their Oracle databases to applications running on AWS services, including Amazon Elastic Compute Cloud (Amazon EC2) and AWS's advanced artificial intelligence and machine learning tools like Amazon Bedrock.
The announcement aligns with Oracle's broader multi-cloud strategy, which aims to integrate its database and hardware solutions with major hyperscalers.
"Our MultiCloud strategy with AWS, Microsoft, and Google is driving growth,” Oracle chair Larry Ellison said.
“Soon customers will be able to use the latest Oracle database technology from within every Hyperscaler's cloud."
Oracle also reported strong fiscal first-quarter results, exceeding analyst expectations. Adjusted earnings per share came in at $1.39, surpassing the $1.33 estimate and representing a 17% year-over-year (YoY) increase.
Revenue totaled $13.31 billion, up 6.9% from the previous year and ahead of the $13.26 billion estimate.
The company’s cloud services and license support, Oracle's largest business segment, grew 10% to $10.52 billion, slightly above forecasts. Oracle’s cloud business, comprising both Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS), saw strong growth, with revenue rising 21% to $5.6 billion. Cloud infrastructure revenues alone were up 45%, reaching $2.2 billion, in line with estimates.
Despite these gains, Oracle's hardware and services segments experienced year-over-year declines, with hardware revenue down 8.3% to $655 million and services down 8.7% to $1.26 billion, both missing estimates.
Looking ahead, Oracle anticipates that cloud infrastructure will remain a major growth driver, projecting IaaS revenues to reach $12 billion by the end of fiscal year 2025. Total remaining performance obligations (RPO) grew 53% YoY to $99 billion, reflecting strong demand for Oracle’s cloud services.
Shares of Oracle were up around 8.3% in post-market trading following the earnings release.