Oracle Corp (NYSE:ORCL, ETR:ORC) shares gained afterhours despite the multinational software firm’s quarterly earnings falling short of Wall Street expectations.
Shares of Oracle added 3.3% at about $154, after finishing Monday’s session down 4.1% amid a broader selloff.
For the fiscal third quarter, Oracle reported revenue of $14.1 billion, missing estimates of $14.36 billion.
Remaining Performance Obligations, which refer to revenue that the company expects to earn from existing contracts with customers, increased by 62% to $130 billion.
Earnings per share of $1.47 were short of the consensus $1.48.
"Oracle signed sales contracts for more than $48 billion in Q3," CEO Safra Catz highlighted in a statement.
“We have now signed cloud agreements with several world leading technology companies including: OpenAI, xAI, Meta, NVIDIA and AMD. We expect that our huge $130 billion sales backlog will help drive a 15% increase in Oracle's overall revenue in our next fiscal year beginning this June.”
Oracle also declared a quarterly dividend of $0.50 per share, a 25% increase from its current quarterly dividend of $0.40.
Investors will be eyeing the company’s earnings call for comments on Oracle’s Stargate partnership, a joint venture between the company, SoftBank, OpeanAI and MGX, that aims to invest $500 billion over four years in AI infrastructure across the US.